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COPYRIGHT DEPOSIT. 



Digitized by the Internet Archive 
in 2011 with funding from 
The Library of Congress 



http://www.archive.org/details/costkeepingconstOOross 



Cost Keeping and 

Construction Accounting 



(Second Edition) 



By G. ED. ROSS 

Associate Member Northwest Society Highway Engineers 

Assistant Secretary, Chief Accountant and Cost Keeper 
The Phez Company, Salem, Oregon 



Adapted to any work consisting of numerous items, 

departments or divisions on which detailed 

unit costs are desired. 



COPYRIGHT 1919, BY G. ED. ROSS 
SALEM - - - OREGON 



All manner of construction enterprises come under this 
head, such as Irrigation, Highway, Railroad, Ship- 
building and Municipal Improvement. It is 
also adaptable to a large variety of 
manufacturing enterprises. 



Price: Cloth Binding, postpaid, $2.50 per Copy 
Special Discount on orders at one time for Ten or more 



GENERAL DISTRIBUTORS: 

THE ROSS SYSTEM COMPANY 

1453 Court St., Salem, Oregon 



■ I 



The Author 
George Edward Ross 
FORMERLY WAS 

Chief Clerk and Special Fiscal Agent United States Reclamation Service, 
Yakima Valley, Washington. 

Chief Clerk, Purchasing Agent and Costkeeper, Tumalo Irrigation Project 
Central Oregon, (near Bend.) 

Secretary and Auditor, Oregon State Highway Commission, 
Salem, Oregon. 

Traveling Accountant, Construction Division, War Department, 
Washington, D. C. 

(This Covers a Period of Twelve Years) 



OCT 23 1919. 



©CU586274 



I^A- y~* \ 



WAR DEPARTMENT 

OFFICE OF THE CONSTRUCTION DIVISION OF THE ARMY 

WASHINGTON, D. C. 



^December 31, 191$ 

(Bcorge TE. 31oss: 

On Your retirement toda? from service in 
tl)e Construction ^Division of tl)e ^\rntY» ~3 
desire to express m? appreciation of tl>e cred- 
ible assistance rendered b^ you in helping win 
tl)e Wan 

X3l)e spirit of TLo^altY* (To-operation anb 
intelligent effort wljicl) characterised ^our ser- 
vice in tl)e Construction division, is one of 
tl)e instruments bY wl)ict) tl)e successful prose- 
cution of its great work l)as been made possible. 

U congratulate you on tl)e part y°u Ijave 
taken in tl)e station's record of accomplishment 
anb extend to you ntY cordial anb sincere good 
wishes. 

31. <T. 52tarsl)aU, 3r., 

brigadier (Bcneral K. S. '^V.. 
<£l)ief of (Tonstruction division. 



Table of Contents 



Title Page 3 

Frontispiece * 6 

Statement by General R. C. Marshall, Jr., Chief of 
Construction Division of the Army during the 

"World War" 7 

Table of Contents 8 

Preface 12 

Practical Opinions by Practical Men 

Dr. F. H. Newell, President American Association 

of Engineers 18 

Portland's Prominent and Active City Engineer. . 19 

Oregon's Present "Efficiency" Governor 19 

Oregon's Former "Prison Reform" and "Bone 

Dry" Governor 20 

Used With Lecture Course Oregon Agricultural 

College 21 

Introduction • 22 

Cost Accounting 

Fundamental Requirements 25 

Cost-Keeping An Interesting Study 25 

Superintendent Should Have Daily Costs 25 

Up to Date Accounting a Live Issue 26 

Accounts Require Special Treatment 27 

Duties of Timekeepers Numerous 27 

Essentials of Cost Systems 

1. An Accurate Record 28 

2. Daily Detailed Costs 28 

3. Supporting Narrative 28 

4. Avoid Unnecessary Duplication 28 

5. Cost Records Tie Into General Accounting 

System 28 

6. Friendly Rivalry Increases Efficiency ........ 29 

7. Few Books and Forms Required 29 

8. Special Men to Handle 29 

Preparation of Account Number Book 29 

Prefixes 32 



General Root Prefixes 33 

Special Prefix Numbers 33 

Examples Illustrating Use of Prefixes and Index of 

Projects 34 

Bridge Prefix Numbers, Illustrations of Use, etc. .... 35 

Culvert Prefix Numbers, Illustrations of Use 35 

Account Number Book: Its General Use 

Instructions As to Its Use . 36 

Sample Letter of Instructions to Engineer 36 

Prefix to Be Used 37 

Use Prefixes on Invoices and Timebook 37 

Importance of Care and Accuracy 37 

No Changes to Be Made in Field 38 

Carefully Study Items of Features 38 

Charges Based on Work Performed 39 

An Account Number £o£ Every Charge 39 

Account Number Book: Features and Items 

Explanatory Notes — Administrative Features, 1 to 

135 40 

Administrative — Expense of State Highway Com- 
missioners, Nos. 1 to 20 41 

Administrative — General, 21 to 75 42 

Administrative — Bridge Department, 76 to 110 . . 43 

Administrative — Auditing Department, 111 to 135 44 

Automobiles and Trucks 

Sample Entries in "Motor Vehicle Register" .... 46 

Feature Numbers, 136 to 150 47 

General — Field, Feature, 151 to 195 49 

Camp Construction, Feature, 196 to 225 51 

Mess House Construction and Operation, Feature, 226 

to 245 52 

Construction and Operation Corrals, Feature, 246 to 

265 53 

Construction and Operation Blacksmith Shop, Feature, 

266 to 285 53 

Storehouse Charges, Feature, 286 to 305 55 

Surveys, Preliminary, Location and Land Ties, Feature, 

306 to 340 56 

Right of Way, Feature, 341 to 380 57 

Construction of Sub Grade, and Spreading and Rolling 

Crushed Rock and Gravel, Feature, 381 to 450 59 

Riprapping, Feature, 451 to 490 61 

Gravel Screening and Rock Crushing Plant, Feature, 

491 to 535 . • • 62 

Operation Industrial Railway, Feature, 536 to 560 .... 63 

Hard Surface (Concrete), Feature, 561 to 615 64 

Setting Up and Operating Paving Plant (Asphaltic 

Surface) , Feature, 616 to 670 66 

9 



Paving (Asphaltic), Feature, 671 to 710 67 

Culverts and Drains, Feature, 711 to 765 69 

Special Numbers for Construction of Reinforced Con- 
crete Box Culvert, Feature 766 to 805 71 

Bridges — Steel, Concrete, or Frame, Feature, 806 to 

885 73 

Binders and Forms for Field and Office 

Books and Forms and Their Use 76 

Try Temporary Form Before Definite Adoption . . 77 
Timebook Sheets, Plates Nos. 1, 2, and 3, Explan- 
atory 78 

Key to Items Noted on Plates 78 

Badge Number, Its Use 79 

Plate No. 1, Illustrating Timebook Sheet 80 

Plate No. 2, Explanatory . 81 

Plate No. 2, Illustrating Reverse Side Timebook 

Sheet 82 

Plate No. 3, Illustrating Summary of Account 
Numbers on Timebook Sheet, and Recapitula- 
tion of Pages 83 

Permanent Record Is Secured 84 

Plate No. 4, Timebook Form, Explanatory 85 

Plate No. 4, Illustrating Timecheck Form, Its Use, 

etc 86 

Plate No. 5, Cost Ledger Sheet, Method of As- 
sembling Account Numbers, Explanatory 87 

Plate No. 5, Illustrating Cost Ledger Form, It's 

Use 88 

Cost Items May Be Blue Printed and Sent to 

Field Men • . 89 

Value of Harmony Between Field and Office 

Forces 90 

Engineer Must Have Definite Cost Items 91 

Plate No. 6, Large Size Cost Ledger Sheet, Ex- 
planatory 92 

Plate No. 6, Illustrating Large Size Cost Ledger 

Sheets, Its Use 93 

Relative Merits of Large and Small Cost Ledger 

Sheets 94 

Plate No. 7, Check Register and Voucher Register 

Forms, Explanatory • 95 

Plate No. 7, Illustrating Check and Voucher Reg- 
ister Forms 96 

Plate No. 8, Personal Ledger Card, Explanatory. . 98 
Plate No. 8, Illustrating Personal Ledger Card- • 99 
Plate No. 9, Messhouse Report Form, Explenatory.100 
Plate No. 9, Illustrating Messhouse Report Form. .101 

Low Costs and Best Meals at Same Camps 102 

A Good Steward a Valuable Asset in a Construc- 
tion Camp 103 

10 



The Troubles of a Camp Cook 103 

A Sliding Scale of Wages for Cooks 104 

Good Wholesome Meals the All Important Factor 

in Camps 104 

Charges to Be Assessed Against Mess House Oper- 
ation 105 

Real Profit From Mess Operation to Be Judged 

From "Pep" of Workmen 105 

Plate No. 10, Illustrating Corrall Report 10G 

Plate No. 10, Corral Report, Explanatory 107 

Plate No. 11, General Ledger Sheet, Explanatory.107 
Manner of Handling General Ledger Accounts 

Varies 107 

Plate No. 11, Illustrating General Ledger Sheet, 

Small Form 108 

The Handy Pocket Binder 109 

Plate No. 13, Equipment Record Sheet, Its Use, 

etc 110 

Plate No. 13, Illustrating Equipment Record Sheet.lll 

Use of Equipment Record Book Explained 112 

Assembling of Depreciation on Equipment Charges. 113 
Handling Records of "Small Tools" and Large 

Equipment 114 

Repairs to Equipment 115 

Storehouse Operation 115 

Plate No. 14, Illustrating Stock Account Card. • -116 

Anticipate Possible Slow Deliveries 117 

Percentage Added to Absorb Overhead in Store- 
house 119 

Relationship of Purchasing Department and Store- 
house 120 

Responsibility Should Be Definitely Fixed 121 

Plant Requisition Book, Its Use Explained 122 

Plant Requisition Form, Illustrated 123 

Plate No. 12, Illustrating Condensed Office 
Records 126 

Reduction in Size of Form — Increase in Quality 
and Practicability 129 

General Information Regarding Account Number Book 
and Forms Illustrated 

Few Numbers Are Used At One Time on Each 

Project 130 

Horse Sense vs. College Training 131 

Difficulties of Purchasing Department 132 

Suggestions on Organization 134 

Plate No. 15, Illustrating Organization Chart. 135-138 
Plate No. 15, Organization Chart, Explanatory. .140 
The Advantages in Being "Just Natural" — the 
Folly of Being Otherwise 142 

li 



The Successful Chief — Some Qualifications Neces- 
sary . 143 

"Learn to Labor and to Wait" 145 

Putting "Pep" Into Dull Work 147 

Are We Producers or Non-Producers? 148 

Friction in an Organization Is an Expensive 
Article 149 

The Man Who Works Nights and "Grouches" Day- 
Times 151 

A Few Sections from a Manual of Instructions to 
Employes 151 

"Passing the Buck" Makes Weak Men Weaker. .153 

The Construction Costkeeper 155 

It Can Be Done 156 

New Leaders Are Continually Being Developed . . 157 

Provide Intelligent Data for Future Use 160 

To Whom Should Cost Man Report? 160 

Encourage County Officials to Keep Cost Data- .161 
The Construction Timekeeper . 163 

After All, the Spirit With Which an Organization 
Works Is the Controlling Factor 165 

"Fishin'" 166 

The Value of Good Cost Records 167 

A Field for Competent Cost Accountants 167 

Criticism of a Foreign Scientist 169 

Better Methods Certain to Develop . 171 

The Best Boosters in the Whole Round World 171 



12 



Preface 



For a number of years the writer has been 
especially interested in cost accounting* matters. 
On coming to the Pacific Coast country excellent 
opportunity was offered on heavy construction 
work for development along the line of his natural 
inclination. About 1908 he started to work 
out a simple but comprehensive system of accounts 
for construction work. Costkeeping records with 
general office records were combined, using field 
records so far as practicable as a part of the 
permanent record. This was intended to fit the 
accounting requirements of the average contractor 
who did not feel justified in going to much expense 
for accounting work. Fortunately conditions were 
such for two years as to make it possible to spend 
the entire construction season each year in the 
camps with the men, and to associate continuously 
and intimately with them. While in charge of the 
entire accounting work on projects for a number 
of years, the writer has endeavored to spend as 
much time as possible in the field, and confesses 
that close association with practical field construc- 
tion men has materially changed and broadened 
his views on construction accounting. Develop- 
ment on this original outline continued several 
years until in the spring of 1913 an opportunity 
presented itself to try the system complete on the 
construction of the Tumalo Irrigation Project, 
near Bend, in Central Oregon. 

13 



The simplicity of the methods used and the 
comprehensive manner in which cost and general 
office records were made available, together with 
the low cost of operation caused considerable 
favorable comment throughout the Pacific States, 
especially from sections interested in irrigation 
construction. The success on this work secured for 
the writer an appointment as Secretary and 
Auditor of the Oregon State Highway Department 
at Salem, to install and operate this system of 
costkeeping and general office accounting. Road 
construction accounting problems differed some- 
what from those on irrigation construction, but in 
the main the principles encountered were much 
the same. Some of the forms used on the Tumalo 
Project were adopted without change; others were 
modified, and a few entirely new ones were found 
necessary. 

Articles in the Engineering Record, published 
in New York City, under date of June 24, 1916, 
and Western Engineering, published in San Fran- 
cisco, outlining the method of costkeeping and 
accounting used by the Oregon State Highway 
Commission, resulted in a great many inquiries 
from all over the country, for more detailed in- 
formation, forms, etc. 

In December, 1916, under direction of the State 
Engineer, there was prepared State Highway Bul- 
letin No. 2, on "Costkeeping and Accounting." 
This Bulletin consisted of 60 pages and described, 
in a general manner, our methods and forms. A 
thousand of these bulletins were printed. They, 
however, supplied only a portion of the requests 
from all sections of the country. In January 



14 



1917 the first edition of "Costkeeping and Con- 
struction Accounting" was issued. Orders came 
from all parts of the United States and Canada; 
also from Europe, Asia, South America, Green- 
land, and many other places, calling forth many 
favorable comments as to the practicability and 
possibilities of the methods outlined. 

During 1917 and 1918 the road program in Ore- 
gon was greatly enlarged, and aggregated a fund 
in excess of $10,000,000, counting Government co- 
operative funds, county co-operative funds, state 
taxes and bond issue funds, which were made 
available for expenditure under direction of State 
Highway Department. This expansion tested the 
elasticity of the system in a very practical manner. 
Its fitness for the larger program was readily 
proven. 

In 1918 the writer secured a leave of absence to 
serve in the Construction Division of the Army; 
reporting at Washington, D. C. His work took 
him over a large number of the cantonments in 
the Eastern, Middle Western, Southern, and 
Southwestern states, where ample opportunity 
was given to inspect methods of handling con- 
struction accounting problems on exceedingly 
heavy emergency work. Some of the country's 
largest and best equipped contracting companies 
were employed on these projects. 

Next to his desire to be "in" on the war game, 
and serve his country in its time of trouble, the 
writer's object in going East was that he might 
improve the opportunity offered during those 
times to become familiar with the methods of con- 
struction accounting in general use. His investi- 

15 



gations were made with an open mind as he wished 
to learn and broaden his own knowledge along the 
lines of his chosen profession. A great deal of 
overtime service was given Uncle Sam in order to 
go thoroughly into these matters. 

On his return to the Pacific Coast he was more 
firmly convinced than ever that accounting prac- 
tices followed in the West were producing results 
equal to any in use elsewhere and that we were 
getting at the matter of costs from quite a differ- 
ent angle. It is believed we are securing greater 
segregation with fewer and smaller forms and 
using more conveniently handled books than was 
the case with the systems which the writer investi- 
gated on Government construction work. Hence 
this publication. 

The author wishes to acknowledge indebtedness, 
and express his appreciation to a host of associates 
who have been responsible for the favorable re- 
sults secured on construction projects by methods 
outlined herein. 

This system of accounting is still far short of 
its possibilities both in construction and commer- 
cial work. The author invites and will thoroughly 
appreciate criticism as to methods outlined and 
suggestions for improvement which may assist in 
making it better adapted to handling of general 
construction accounting problems. 

Each project will find problems which require 
an intimate personal knowledge of all local condi- 
tions before they may be intelligently solved. 

THE AUTHOR. 

Salem, Oregon, September 5, 1919. 



16 



Practical Opinions by Practical Men 



On the Merits of the Numerical Method of Cost Keeping 
and Accounting and of the Author's General Standing and 
Success AVith This System on Large Projects 

The object of the insertion of the following 
comments in a book of this nature is to encourage 
the study of the book, instead of simply the read- 
ing of it. The arrangement of the book and much 
labor in its compilation have been with the hope 
that it might be useful to those into whose hands 
it fell. Sometimes a book is superficially read, 
and from the fact that nothing of interest imme- 
diately catches the eye of the reader, it is thrown 
aside and little of practical value comes from its 
ownership. In an attempt to save this publica- 
tion from that fate, in as great measure as pos- 
sible, the statements of prominent men have been 
recorded. They consider the methods outlined 
and the contents of the book worthy of comment, 
at least, and if the person interested in construc- 
tion accounting does not at first glance find some- 
thing of interest and value, perhaps the state- 
ments of these gentlemen will induce him to study 
the book a little more closely. If this publication 
falls short of being a real Practical Service Book, 
it has not accomplished what the author earnestly 
hopes of it. 

(These statements refer to first edition of Cost Keeping: 
and Construction Accounting-. This edition is largrer and of 
a more general nature than the first volume). 

17 



A Staunch Friend of the Arid West 

"I have taken the book with me on one of my trips in 
order to read it over. Had we been in possession of some- 
thing - of this kind when the Reclamation Service started, 
we could have saved great sums of money and much un- 
necessary worry." — Dr. F. H. Newell, President American 
Association of Engineers, formerly Director of the Uniteid 
States Reclamation Service (University of Illinois, Urbana, 
111.) 

Uncle Sam's Great Road Building Department Interested 

"This office has been investigating the subject of cost- 
keeping for road work for some time, and I fully realize the 
amount of thought and hard work your bulletin represents. 
I assure you that we have received considerable assistance 
in our cost work both from your bulletin and your letters." — - 
L<. W. Page, late Director of the United States Bureau of 
Public Roads and Rural Engineering, Washington, D. C 
(Above letter written in 1917). 

After Several Weeks Careful and Critical Investigation 

"From an examination of the method of costkeeping and 
the handling of accounts, we wish to state that in our 
opinion, the system as now in operation under the super- 
vision of Herbert Nunn, State Highway Engineer, and G. Ed 
Ross, Secretary and Auditor, is one of the most perfect that 
we have ever had the pleasure of auditing*." — Extract from 
a report to the State Highway Commission by Crandall & 
Roberts, Certified Public Accountants, Portland, Oregon. 
Dated March 12, 1918. 

To Be Used in the Course of an Ohio University 

"I have studied this little book with care and find in it 
the most concise, and at the same time usable material on 
this subject that has yet come to my attention. I shall find 
use for it in my course in Highway Engineering." — John J. 
Long, Assistant Professor of Civil Engineering, University 
of Cincinnati. 

An Authority on Water Power and Irrigation Projects 

"The people of Oregon are indebted to G. Ed Ross, auditor 
and accountant in the State Highway Department, for devel- 
oping the details of this system. He was selected for this 
position because he has devoted his life to this class of 
accounting work. Prior to his appointment he was employed 
by the state in construction of the Tumalo Irrigation 
Project and later in the state's department of Accountancy. 
I wish to acknowledge the loyalty, faithfulness and zeal 
with which he 'has handled the work entrusted to him." — 
John H. Lewis, State Engineer. Salem, Oregon, December 
10, 1916. 

Cost Engineer Construction Division 
War Department Comments 

"Believe the method of numbering 1 and segregating ac- 
counts, laid down in your book, is one of the most simple 
and efficacious that can be devised. Your notes and the 
detail given in explanation of the methods are brief and to 
the point. The forms are practical and readily understood. 
* * I see absolutely no reason why it is not applicable 
to any business w^here costs have to be kept." — Joseph 
Weare, Cost Engineer, Construction Division, War Depart- 
ment, 7th and B Streets, Washington, D. C. 

18 



Portland's Prominent and Active City Engineer 

"I am well acquainted with G. Ed Ross and his system of 
'Cost Keeping- and Construction Accounting.' His system 
was installed on the Tumalo Irrigation Project (Central 
Oreg-on) and was used by the State of Oregon on this project 
under my charge during the years 1913 and 1914 with re- 
markable success. I consider the system of cost keeping 
and construction accounting as devised and established by 
Mi. Ross to be the most perfect, simple and effective for 
practical results on all kinds of construction, that could be 
Used." — O. Laurgnard, City Engineer, Portland, Oregon. 
President Oregon State Board for the Examining' of 
Engineers. 

Oregon's Present State Highway Engineer 

"Mr. Ross is responsible for the installation of a cost 
accounting system in the Highway Department (Oregon; 
that has caused favorable comment throughout the United 
States. * * * I have never known a man who had a 
greater capacity for work, and he is thorough, painstaking 
and conscientious. * * His moral habits are of the best 
and his character excellent. This Department sees the 
departure of Mr. Ross with the greatest regret." — Herbert 
Nunn, State Highway Engineer of Oregon. 

The Author's "Post Graduate Course" in Construction 

Accounting. Government Cantonments Were Visited in 

the Middle Western, Eastern, Southern and Southwestern 

States 

"Before leaving the service of the Construction Division 
(War Department) I desire to express to you my sincere 
appreciation for the efficient and loyal service you have 
rendered as a member of the organization of this section. 

"As a representative of the Washington Office, visiting 
the construction projects in the field, you have come directly 
in contact with the difficult accounting problems en- 
countered by the Field Auditor and his staff, and through 
your ability to analyze the essential points and your de- 
termination in sticking to the problems until they were 
successfully solved, you have been able to render a real 
service for which you deserve high commendation. For any 
degree of success Which this Department has merited you 
are in a large measure responsible. You have always shown 
the keenest interest in your work and have been loyal and 
patriotic at all times. * * *." — Major L. J. Kelly, Chief of 
Traveling Accountants, Construction Division of the Army, 
Washington, D. C, July 14, 1919. 

Editorial Comment 

"Mr. G. Ed Ross has contributed an article in this issue 
that should go far toward elucidating the principle of cost- 
keeping and render easy the development of a system ap- 
plicable to highway construction and other kinds of 
engineering work. In this connection it is interesting to 
note, that since the article went to press, we have received 
word of a number of counties in Oregon which are preparing 
to install Mr. Ross' system, with the object in view of 
having all highway records uniform throughout the state." — 
Editorial "Western Engineering," San Francisco, April 1916, 

Comments By Oregon's Present Governor 

"I know him (G. Ed Ross) to be a young man of ability, 
integrity and Character. * * He has been in the employ 

19 



of the State of Oregon in various capacities and has always 
made good. * * As our office is the auditing office of the 
state, we have been brought into close touch with Mr. Ross 
and know intimately of his work with the Commission 
(State Highway Commission) and of his high standing with 
them. * * Mr. Ross' standing in this community is of the 
highest and he is entitled to the fullest confidence and 
respect of all." — Hon. Ben W. Olcott, Governor of the State 
of Oregon. (At time above statement made in July 1918* Mr. 
Olcott was Secretary of State). 

Oregon's Grand Old Man— A Special 

Friend of All Young People 

"I have been familiar with Mr. Ross' work for a number 
of years and have a very 'high regard for him as a man of 
unquestioned integrity and one who is always industrious 
and reliable. He is thoroughly efficient in his work and 
has my unqualified endorsement for any position of trust 
and responsibility that he may see fit to aspire towards." — 
Hon. James Withy combe, Late Governor of Oregon. 

Oregon's "Prison Reform" and "Bone Dry" 

Governor Gives His Endorsement 

"I am pleased to say that Mr. Ross' system of accounting 
proved satisfactory in every particular and enabled us to 
keep in close touch with the progress of the work (on 
Tumalo Irrigation Project) and know at all times just how, 
when and where every penny of the state's money was 
being expended, and it gives me pleasure to add my un- 
qualified endorsement to his system of accounting and 
commend it to those who may have in mind the adoption of 
new methods/' — Hon. Oswald West, Governor of Oregon 
1911 to 1915. 

Applicable to All Sized Projects 

"The system outlined is believed to fit the needs of today 
in road building. It is sufficiently elastic in its operation to 
be applicable to the smallest as well as the largest unit or 
project." — Statement on Editorial Page "Concrete Highway 
Magazine," Chicago, undeir date of January 1917. 

A Consulting Engineer's Opinion 

"Having had an opportunity to make more than a super- 
ficial study of the book, I wish to say that expressions of 
the author's ability and thorough understanding of the 
subject, may be observed throughout the publication." — ■ 
Howard VV. Holmes, Designing and Consulting Engineer 
Bridges and Structures, Highway Improvements and Pave- 
ments, Portland, Oregon. 

A Former Engineer Lackawana Railroad 
System in New Jersey 

"We have given your cost number system a fair, honest 
tryout. I like it very much. Simple, comprehensive data 
is there available when wanted. It is a systematic method 
of preserving construction records which can be handled by 
any intelligent man understanding what cost data is wanted, 
and simple methods of timekeeping." — E. I. Cantine, former- 
ly State Highway Engineer of Oregon. 

20 



Used With Lecture Course Oregon Agricultural College 

"We are using this book in connection with the Lecture 
Course on Economics of Highway Construction, and find it 
of value. I am also using a modified form of this method 
in keeping the costs on my campus improvements, and find 
it very convenient." — Gordon V. Skelton, Professor Highway 
Engineering, Oregon State Agricultural College. 

Even Russia Was Going to Try It 
When Czars Still Existed 

"The book I presume will save much money as It is 
applicable to all works and conditions and can be used 
successfully in Russia." — John S. Zubkon, (Agent lor the 
Russian Government). Letter dated August 29, 1917, P. O. 
Box 115, Uucleton, Pa. 

A County Surveyor Uses the System in Road Districts 

"I wish to say that I am immensely pleased with the way 
the cost keeping system is working out." — Hollis W. Libby, 
County Surveyor, Lane County, Oregon. 

The "Big City" Is Interested 

"There is no book in our great city which gives the in- 
formation which is contained in your copy." — P. S. Kaufman, 
care of De Garcy Company, New York City, August 3, 1919. 

The Locator, Designer and Engineer on the Construction 

of the Famous "Mitchell Point Tunnel" on the Columbia 

River Highway Has Used This System for Years 

"Personally I have seen tried and used myself several 
other systems but do not hesitate to say that your system 
gives all the required results with the minimum amount of 
work. I have used your system on location surveys, on day 
labor jobs and contract work, and find it equally applicable 
to all classes of work." — J. A. Elliott, Senior Highway 
Engineer, United States Bureau of Public Roads. In charge 
of Forest Road construction, Portland, Oregon. 

It Suits the Practical Superintendent 

"There is no lost motion or red tape in this entire system 
of accounting." — Axel M. Bye, formerly Superintendent of 
Construction U. S. Reclamation Service, Arizona and Yakima 
Valley, and later for the Guggenheim Company in Chile. 

When Trouble Starts There is Need of 
Definite Cost Figures 

"Public officials are beginning to realize the importance 
of being able to face their constituents with tangible facts 
when the question of judicious expenditures arises, as it 
very frequently does on public work. 



21 



Introduction 



Cost keeping should start with the first survey 
on highway work and be a comprehensive continu- 
ous record, by distinct features, to completion of 
construction. Maintenance cost records are then 
started and continue from year to year. Proper 
cost records are nothing more or less than 
historical facts, which if intelligently compiled, 
form the basis on which the history of the project 
is built. 

Uniformity in construction accounting is pos- 
sible only to the extent of adoption of a theory or 
principle sufficiently elastic to be adaptable to a 
wide range of varying conditions, suitable for the 
largest, as well as the smallest construction enter- 
prise. The method of procedure is then uniform, 
and the data gathered will be uniform to the point 
of similarity of conditions on the various projects, 
or units of projects. 

The divisions on the average construction job 
to insure proper supervision of the forces em- 
ployed, are the logical units for cost records, and 
when segregated in this manner, it matters little 
whether the cost of the project is a few thousand 
dollars or millions — the principle involved and 
method of securing data by units are identical. 

If the division happens to be a gang of 50 men 
on earth excavation, accomplishments per man 
per day, week or month may be compared item by 
item with a rival gang of 165 men, or another with 

22 



200 men, all doing similar work. All the items on 
different features may not necessarily be identical, 
if a sufficient number are similar to make possible 
a fair comparison of the relative degrees of effi- 
ciency. By this comparison the accomplishment 
per man as well as the weak points of the less ef- 
ficent gangs are apparent. It will also determine 
to some extent whether or not large crews are 
handled economically, from the standpoint of ac- 
complishments per man, as compared with smaller 
gangs. The man day performance test frequently 
results in surprises as to the real values of fore- 
men and superintendents, as well as those in less 
important positions. 

With this definite record at hand, those who 
are not accomplishing an average day's work may 
be detected and either speeded up or dropped. 
When men are graded and rewarded by a fair 
test of efficiency, increased effort and results are 
invariably assured. 

Many of the items of cost develop with the 
work. The washing out of false work and piers 
on bridge construction, earth slides on road con- 
struction, and emergencies of like nature are al- 
ways possible. For this reason it is practically 
impossible to determine in advance, in just what 
form the final statement of costs will be desired. 
Considerable detail is, therefore, necessary, and 
by keeping the data in small items during the 
construction period, it may be finally assembled 
in most any form. 

As supporting narrative for charges against the 
various account numbers, and for historical pur- 
poses, the cost keeper should have a carefully kept 



23 



diary covering all important events during con- 
struction. 

The numerical system of costkeeping and ac- 
counting is adaptable to any work consisting of 
numerous items, departments or divisions, on 
which detailed unit costs are desired. It is simple 
in its operation, after once the principle is thor- 
oughly understood, and is intended to meet all 
emergencies that arise on construction work. Costs 
on divisions are assembled in such form that it 
may be known at all times just what units are 
within the estimated cost, and those running 
higher on which special study is required. The 
forms necessary in its operation are few and 
inexpensive. 

It is not expected, however, that this method 
of costkeeping can be properly installed after 
merely reading this outline. There are many dif- 
ficulties to overcome in gathering reliable cost 
data, which require the exercising of judgment 
and experience in this special line of work. 

Every expense on a project is taken care of by 
this method, and every feature bears its share of 
administrative expense. When the books are 
finally closed the total of the cost ledger features 
together with the appraised value of equipment 
and supplies left, should balance with the gross 
expenditures on the project. 

If, from the outline herein, the system appears 
otherwise than simple, the difficulty lies in ability 
to properly describe its operation, rather than in 
the system itself. 



24 



Cost Accounting 

FUNDAMENTAL REQUIREMENTS 
Cost-keeping an Interesting Study 

When entered into with the proper spirit and 
a system of accounting which makes possible def- 
inite and effective results, construction costkeep- 
ing becomes a most fascinating study. There is 
that constant change and growing to completion 
of something tangible which is found in scarcely 
any other branch of accounting. The duties of the 
cost-keeper on the larger projects are such as to 
require him to be in very close touch with every 
detail of the work and about as busy a man as can 
be found on the job. Congenial labor and plenty 
to do is usually productive of a "contented mind," 
which an old proverb tells us "is riches untold." 

Superintendent Should Have Daily Costs 

A costkeeping system which does not provide 
for frequent rendering of detailed unit costs on all 
features of the work during the course of con- 
struction is a back number and of little practical 
value. When new work is started a summary of 
labor costs on part of the features should be taken, 
possibly every evening. On an ordinary job this 
takes the timekeeper but a few minutes. By 
counting the wagon loads, fresno, slip and wheeler 
trips for a given period, or other means suffi- 
ciently accurate for estimating purposes, the 
superintendent has a method of getting at the 

25 



yardage each day. With a daily summary of 
charges against all features he knows, while the 
work is active, about how the costs are running. 
If they appear excessive he can give that particu- 
lar unit his immediate attention. From his office 
he can frequently locate the trouble in a fairly 
definite manner, it is this feature of the system 
which is considered of greatest practical value, 
inasmuch as, when properly handled, it greatly 
increases the efficiency of the superintendent and 
his foremen and makes real money for the man- 
agement through the medium of lower unit costs 
and greater accomplishments per gang. 

Up-to-Bate Accounting a Live Issue 

A few years back accounting was looked upon 
as a sort of necessary evil and dead expense. The 
sales department in the up-to-date commercial 
business is no more effective in its functions of 
preserving and stimulating the "life of trade" and 
no more necessary than a proper method of ac- 
counting on construction projects when placed in 
proper relationship to the work. It certainly is a 
barometer on every activity, and, if in its opera- 
tion it retains its position as "pace setter" for the 
organization, must show a little more speed than 
the speediest superintendent or foreman. In this 
age of close competition and advanced methods, 
when the element of guess work on construction 
estimates is practically eliminated, the accounting 
system which is only at home in the rear of the 
procession and gives costs only after the work is 
completed is of little value. Accuracy of results 
at a minimum cost for operation is the primary 



26 



object of the numerical system of accounting pre- 
sented on these pages. 

Accounts Require Special Treatment 

Construction accounts, from their very nature, 
require different treatment than that given most 
other classes of accounts if necessary results are 
to be accomplished. The accountant should not 
only be able to compile a record of all transactions, 
but to have this in such form that the items 
making up the cost of a piece of work give an 
intelligent and reliable basis on which to estimate 
other work. 

Duties of Timekeepers Numerous 

An important fact which should not be over- 
looked is that usually timekeepers and men hand- 
ling clerical matters on construction work are 
engaged a large part of the day with variouls 
other duties which are frequently of such im- 
portance that the time spent on cost-keeping and 
accounts is considered as a side issue. If the 
system of accounting employed is intricate and 
topheavy with detail it encourages guesswork and 
carelessly kept records, which, at the close of the 
job, will be found inadequate and incomplete and 
of very little value either as a basis for the cost 
of that work which they are intended to cover or 
the working out of estimates on future jobs of a 
similar nature. It therefore stands to reason that 
the more simple an accounting system is in its op- 
eration, if it has the essentials, the more accurate 
and workable the cost data will be when finally 
compiled. 

27 



Essentials of Cost Systems 

The essentials for a practicable accounting sys- 
tem for construction work should embody the fol- 
lowing features : 

An Accurate Record 

1. An accurate record of all obligations as they 
are made is necessary that the state of finances 
may be known at any time with a minimum of 
uncertainty. 

Daily Detailed Costs 

2. Individual items of cost of structures on sec- 
tions of work should be kept in such detail and be 
available at such frequent intervals as to give the 
superintendent an opportunity of checking and 
eliminating exorbitant costs from day to day while 
the work is in actual progress. 

Supporting? Narrative 

3. There is needed sufficient detail in items of 
cost, with supporting narrative as to conditions 
prevalent at the time of the work and locality in 
which it is done, as will make it possible on future 
work having some elements of similarity to safely 
base estimates upon these costs. 

Avoid Unnecessary Duplication 

4. Every original entry, so far as possible, 
should be embodied as a portion of the permanent 
record, thus doing away with unnecessary copy- 
ing and excessive clerical work. 

Cost Records Tie Into General Accounting System 

5. All cost-keeping records must tie in and be a 
part of other office records kept, and balance 
with gross expenditures on the entire work. 

28 



Friendly Rivalry Increases Efficiency 

6. On each gang's work there must be a check 
which will show its comparative accomplishments 
daily, weekly or monthly. This will create en- 
thusiasm and friendly rivalry among foremen, re- 
sulting in more efficiency and lower unit costs. 

Few Books and Forms Required 

7. There should be as few books and forms of 
record as possible to accomplish these results in 
the most simple and effective manner with a view 
of making permanent as many of the original 
records as practicable. 

Special Men to Handle 

8. Men operating this accounting system should 
have ordinary "horse sense'' and sufficient judg- 
ment to grasp the essential features of construc- 
tion work on which unit costs are desirable, and 
may be of value later as well as at time of con- 
struction, rather than men who are interested in 
the clerical work from a clerical standpoint only. 
This class of men is to be found on most construc- 
tion work. All that is required to make them val- 
uable assistants is a man at their head who is 
thoroughly familiar with construction accounting 
and costkeeping, and also has sufficient knowl- 
edge of general office and accounting require- 
ments to instruct his field assistants intelligently 
as to just what records to keep and how to keep 
them. 

Preparation Account Xumber Book 

After a tentative program of the work on the 
prospective project is disposed of, the account 

29 



number book should be prepared. The nature of 
the items of the account number book will vary 
with the ideas of those managing the work. Some 
desire costs worked out to the finest detail, while 
others are only particular as to the total costs of 
features. 

The Cost Man, however, in making up the ac- 
count number book, should be guided largely by 
the fact that during construction and on comple- 
tion of the work, he will be asked for numerous 
items of cost that were never thought of at the 
beginning. In making up the features, and the 
account numbers he should consult freely with the 
engineers and construction men to get a good 
range of their ideas on the manner in which cost 
data is to be called for. He should then provide 
a segregation of items that will enable him to 
supply practically any cost of features or portions 
of features constructed. This will also require 
frequently added numbers during the progress of 
construction, for which blank spaces are provided. 
The detail into which the units are to be segre- 
gated depends largely on the opinions of the men 
in charge of the work. It has been the writer's 
experience that few construction men can or will 
announce in advance just how much detail they 
are going to require. Another factor in this con- 
nection is that it is extremely difficult to look 
ahead on the average construction job and fore- 
tell what conditions are to be faced. The manner 
of securing costs should be of such nature that it 
may be quickly expanded to include cost data 
caused by emergencies and should be sufficiently 
in detail to give the construction men practically 



30 



any information they may ask for at any time. 
This will require considerable detail, especially if 
the project is large. If a very small project, or 
the work is practically the same on each section, 
then it is probable very little segregation is re- 
quired. Whether a feature is to contain 90 num- 
bers or only 15 and the items desired depends 
entirely on the judgment of the men in charge of 
the work. The numbers following are quite fine 
and will undoubtedly be considered so by many. 
They may be easily grouped and one number cover 
several items. We find in work on the Pacific 
Coast many good reasons for a detailed segrega- 
tion and but little extra work is necessary to carry 
the cost data along the lines outlined herewith. 

Great care should be taken to avoid apparent 
conflict in items of the various features. 



31 



PREFIXES 

Oregon has thirty-six counties. These are 
numbered consecutively and the numbers used as 
root prefixes. Each root prefix is followed by a 
letter to indicate the individual project. The root 
prefix identifies the project as to county and the 
letter identifies it exactly as to location in the 
county, name, nature of construction, cost, name 
of contractor, dates of beginning and completion, 
engineer in charge, source of funds, and all data 
of like nature for permanent and definite record 
of work accomplished. 

The counties are considered as the most desir- 
able unit in state highway work for the reason 
that much of the work in this state is done in 
conjunction with the various counties. This proved 
to be a very good segregation. 

Some work which extends over several coun- 
ties is given special prefix numbers and on this 
work the county unit is ignored, except that on 
completion of the work the proper charges are 
prorated to the various counties benefitted and 
through which the improvement passes. 

On bridge and culvert work each structure is 
numbered beginning with the number 51. (By be- 
ginning with No. 51 as a prefix and continuing up- 
ward, the prefixes for bridge and culvert work do 
not conflict with the general prefixes.) 



32 



GENERAL ROOT PREFIXES 



1 Baker 


13 Harney 


25 Morrow 


2 Benton 


14 Hood River 


26 Multnomah 


3 Clackamas 


15 Jackson 


27 Polk 


4 Clatsop 


16 Jefferson 


28 Sherman 


5 Columbia 


17 Josephine 


29 Tillamook 


6 Coos 


18 Klamath 


30 Umatilla 


7 Crook 


19 Lake 


31 Union 


8 Curry 


20 Lane 


32 Wallowa 


9 Deschutes 


21 Lincoln 


33 Wasco 


10 Douglas 


22 Linn 


34 Washington 


11 Gilliam 


23 Malheur 


35 Wheeler 


12 Grant 


24 Marion 


36 Yamhill 



SPECIAL PREFIX NUMBERS 



37 Administrative — General 

38 Administrative — Bridge Department 

39 Administrative — Auditing Department 

40 Administrative — Miscellaneous Funds 

41 General State Reconnaissance Surveys. (All Counties 

in State) 

42 Surveys Eugene to Marshfield, via Florence. (Lane and 

Coos Counties) 

43 Surveys Myrtle Creek to Roseburg. (Douglas and Coos 

Counties) 

44 Surveys La Grande to Pendleton. (Union and Umatilla 

Counties) 

(Note. — Prefixes 37, 38 and 39 are used only when it is 
desired to carry certain charges on construction in the 
regular construction features against administrative. Such 
as general tests, which may be made on one particular 
project for the benefit of all the work in the state. This 
increase in cost, if it results in such, should not be charged 
against the project selected as a fit one to which to apply 
the test, and therefore the regular items in the feature are 
used to denote the particular class of work covered by the 
experiment and the prefix placing the expense in the ad- 
ministrative department, either general, bridge or auditing 
department. These prefixes are seldom used.) 

As an example of how the work is indexed and 
the prefixes created — will take the work in Doug- 
las as an example. Douglas, it will be noted, 
carries the General Root Prefix No. 10. 



33 



10. General charges prorated to all state (or state and 
county co-operative) projects in county. (This means such 
charges as are assessed against the work in Douglas in 
general, which cannot be intelligently prorated or segre- 
gated against one project. An inspection trip by the state 
highway engineer over all the work in Douglas county 
would come under this head.) 

10a. All preliminary and location survey work on Pa- 
cific Highway, from Roseburg south to county line. 80 per 
cent state funds, 20 per cent county. Work started July 
15, 1919. Estimated cost $2,475.00. James Harris, 
engineer. 

10b. All preliminary and location work on Pacific High- 
way, Roseburg, north to county line. 50 per cent state 
funds, 50 per cent county. Work started August 10, 1919. 
Estimated cost $13,172.00. (Farmer's Union to make up 
deficit if this sum is not sufficient.) Clinton Jones, 
engineer. 

10c. Construction work on Pacific Highway near Corn- 
stock. Stations 1 to 512. Line brought to grade and 
macadamized. 50 per cent state funds, 50 per cent fed- 
eral. Post Road Project. Work started May 15, under 
contract No. 75, with the Northwest Construction Com- 
pany, of Eugene. Estimated cost $72,500. James Madison, 
engineer. 

lOd. Construction work on Glendale Hill, Pacific High- 
way — stations 985 to 1010. Fourteen foot earth roadway 
on grade line. Funds all state. Work done under straight 
force account by state. Estimated cost $12,200. Started 
work September 8, 1919. Should complete within 60 days 
of good working weather. Julius Peterson, superintendent 
of construction. Henry L. Newport, engineer. 

lOe. Hard surfacing with concrete, Pacific Highway 
Stations 872 to 981 beginning one mile north of Glandale. 
Contract No. 86 dated June 1, 1919, with Patterson Con- 
crete Construction Company of Ashland. Time limit De- 
cember 1, 1919. Started June 15, 1919. William Barnes, 
inspector. Edward Rose, engineer. Funds all from quar- 
ter mill tax fund — state. 

(Each of the above units is used as a prefix with the 
standard feature numbers in the account number book 
which follows. As the work progresses the above index is 
added to — that is, the date of completion is recorded. 
Changes in engineers, inspectors, superintendents, etc., 
with date of change is recorded, and any other matters 
having important bearing on the work.) 

34 



BRIDGE PREFIX NUMBERS (Sample) 

(To be used with feature "Administrative — Bridge De- 
partment" Nos. 76 to 110 and "Bridges — Steel, Concrete 
and Frame, Nos. 806 to 885 only.) 

No. 123. Plans and specifications Polk-Marion county 
bridge on Pacific Highway, over Willamette river, at Sa- 
lem. Including approaches over one-half mile in length. 
Estimated cost $265,000. Concrete piers, steel frame. 
Started June 1, 1918. Estimated date of completion May 
1, 1919. R. E. Mair, engineer in charge. River Bridge 
Company, contractors. Contract No. 901, dated May 25, 
1918. 

No. 124. Plans and specifications wooden span, con- 
crete piers, on John Day Highway in Grant county, over 
North Fork John Day river. Work to be done by state 
force account. Funds all state. Thomas R. Lee, superin- 
tendent of construction, in charge. 

No. 125. Plans and specifications for 175 foot trestle, 
reinforced concrete, over Mosier creek on Columbia River 
Highway in Wasco county, near The Dalles — south. Robert 
Johnson, contractor. Estimated cost $12,000. Contract 
807, dated May 1, 1918. James Simpson, engineer In 
charge. 

(Above prefixes used with Administrative numbers 76 
to 110 would denote office work, making plans, etc., while 
when used with Construction numbers 806 to 885 denote 
straight construction and charges for field work. 

CULVERT PREFIX NUMBERS (Sample) 

(Following prefixes to be used only with Feature "Cul- 
vert and Drains," Nos. 711 to 765, or "Special Numbers for 
Construction of Reinforced Concrete Box Culverts," Nos. 
766 to 805.) 

51. Box culvert 3 foot by 6 foot — 72 foot long, across 
Columbia Highway in Columbia county — three miles south 
of Rainier. Cost $896.00. 

52. Ingot iron culvert, three feet diameter, on Columbia 
River Highway, one mile north of Rainier. Cost $296.00. 
Length 48 feet. 

53. 24-inch vitrified pipe culvert on Pacific Highway 
south of Ashland. Cost $485.00. Length 32 feet. 

(Note. — Even the index numbers of culvert and bridges 
may be the same, there can be no confusion, as the pre- 
fixes are used on different features. There is also ex- 
plained under features "Culverts and Drains" a different 
method of arranging prefix from the method outlined 
above. Either of them are practicable.) 

35 



ACCOUNT NUMBER BOOK 



' ITS GENERAL USE 
Instructions As to Its Use 

Of the 885 numbers which make up the account 
number book following only a few are used by any 
one engineer and timekeeper at one time. As 
work is assigned to an engineer or superintendent, 
only those f eaturs and numbers which he will have 
use for on his work should be handed him. To 
give him the entire book would usually mean con- 
fusion and the charging of items to improper 
numbers. There follows herewith a sample of 
letter to an engineer who is being sent out to take 
charge of a project : 

Salem, June 10, 1919. 
Mr. Edward Rose, Engineer, 

Glendale, Ore. 
Dear Sir: 

Herewith set of Standard Feature Numbers 
covering work assigned you by State Highway 
Engineer, under date of June 9, 1919. Only 
Features "General Field" 151 to 195; "Camp Con- 
struction'' 196 to 225; "Messhouse Construction 
and Operation" 226 to 245; "Construction and Op- 
eration Corrals" 246 to 265; "Construction and 
Operation of Blacksmith Shop" 266 to 285 ; "Hard 
Surfacing (Concrete)" 561 to 615; "Construction 
of Sub-Grade and Spreading and Rolling Crushed 
Rock and Gravel" 381 to 450 are required on this 
work and you will only make charges to such 
features. 

36 



Prefix to Be Used 

1. Numerous blank spaces are left in the feature 
to be filled in from time to time as the work 
progresses. Your work being in Douglas coun- 
ty, kindly use the root prefix "10" to cover work 
which is chargeable to the county operations as a 
whole — such as the cost of meals for a visiting in- 
spection party which is covering all the projects 
in the county, as well as yours and for the use of 
your car by such officials who may be covering 
county work. For the charges against the project 
assigned to you, kindly use the prefix "10 e." This 
prefix should be used on all direct charges against 
this work for both materials and labor, with the 
proper item as listed under features. 

Use Prefixes on Invoices and Timebook 

2. For labor charges you will note the prefix 
10 e on the cover of your timebook and use feature 
numbers contained herein. On invoices for ma- 
terials and supplies, kindly use the rubber stamp 
which has been mailed under separate cover, 

"10 e " and insert number or numbers to 

which materials and supplies should be charged. 
For instance if you receive one dozen bolts for re- 
pairs to plow, the invoice should bear your "0. K." 
and the notation 10 e — 402. (Repairs to equip- 
ment.) If these bolts were to repair road grader 
then they would be charged to 10 e — 408. After 
goods have been received and found in good order, 
return invoice promptly for payment to general 
office. 

Importance of Care and Accuracy 

3. The value of costs gathered through this sys- 
tem depends largely on the carefulness of time- 

37 



keepers and engineers in making charges against 
the proper numbers. There should never be great 
doubt as to the proper number to use. If there 
does arise some question, especially with new em- 
ployes, kindly take up with the auditor for definite, 
decision. 

No Changes to Be Made in Field 

4. No changes, additions or erasures should be 
made in this account number book without author- 
ity in writing from the auditor. When it is con- 
sidered advisable to add numbers for special work, 
kindly address the general office, and if there is 
no objection to the changes being made, a circular 
letter will be issued and sent to each employe 
affected by this change. 

Carefully Study Items of Features 

5. Before using any of the numbers on new 
work, employes should carefully go over each item 
in the features, and if there is apparent conflict in 
items as applied to your special work, decide def- 
initely on the one to be used. Do not charge work 
of the same nature to one number one day and the 
next day the same work to another number. For 
instance: You have an item, "labor repairs to 
equipment" and "labor carpenter/' The carpenter 
may occasionally be called on to repair equipment 
and while on such work should be carried under 
that number, but if there is doubt as to whether 
his services should be charged to repairs to equip- 
ment or carpenter work, a definite decision should 
be made and all like work charged to one or the 
other. Decide as each question comes up how you 
will charge certain work, then stick steadfastly by 

38 



it. There are not likely to be many of these ques- 
tionable charges, but a few will materialize. 

Charges Based on Work Performed 

6. It should be distinctly remembered that the 
number to be used in all cases depends on the 
kind of work done rather than an employe's title. 
For instance, an engineering party is engaged in 
doing the actual manual labor of erecting camp. 
While their titles may be "engineer," "rodman," 
etc., if the work done is "carpenter work on erec- 
tion of camp," time of these men should be 
charged to the same number which would be used 
had carpenters actually been doing the work, and 
not to "engineering" on this feature. It is the 
labor cost desired rather than a segregation of 
titles. 

Account Number for Every Charge 

7. Every charge that requires the payment of 
money or the crediting back of money into a 
feature, should bear an account number and the 
proper prefix, and no bill for service, material, 
supplies or equipment should come to the general 
office without an account number attached there- 
to. This applies to such projects on which a reg- 
ular storehouse is not maintained. When a store- 
house is maintained, the storekeeper must produce 
account numbers monthly for all requisitions 
filled. 

8. When in doubt write the general office. 

(Signed) Thomas A. Jackson, Auditor. 
(In Charge of Cost Accounting) 

P. S. The writer hopes to visit you on the project about 
the 15th and will then take up any matters regarding the 
use of the features numbers, which have troubled you. 

T. A. J. 

39 



ACCOUNT NUMBER BOOK 



FEATURES AND ITEMS 
Explanatory Notes-— Administrative Features, 1 to 135 

Administrative — Expense of State Highway 
Commission, Nos. 1 to 20. 

Administrative — General, Nos. 21 to 75. 
Administrative — Bridges, Nos. 76 to 110. 
Administrative — Auditing, Nos. Ill to 135. 



These four features comprise the administrative 
"overhead" cost and all the expense of the com- 
mission, general office and other administrative 
charges, including office rental, salaries of office 
force and all like expenses of a general nature 
which cannot be fairly and definitely charged to 
a smaller unit of the work. 

These are chargeable to the entire work and to 
secure reliable cost data such charges must be 
prorated in some equitable manner to the sections 
and features of the projects of which they are a 
part. In most cases a percentage basis of appor- 
tioning these charges seems to be the most satis- 
factory method of securing a fair distribution. An 
appropriate number in the "General — Field" 
feature (No. 194 "Administrative charges pro- 
rated") will be found for this purpose. This item, 
then, with other charges in the feature "General- 
Field" is prorated to each unit of the project. 
When costs are finally determined, they include 
every item for which money has been paid, and 

40 



administrative expense — which is just as much a 
part of the unit cost of every yard of earth moved 
as the salary of the man at the end of a No. 2 
shovel — is not overlooked. The situation of a con- 
tractor apparently making money on every yard 
of earth he moves, and after a few months dis- 
covering that the returns from the job are not 
sufficient to enable him to continue the work, 
will hardly be possible. Few men on construction 
work but have witnessed a condition of this kind — 
usually resulting because administrative expense, 
and, through a loose system, probably numerous 
others which are considered "small" and unim- 
portant, having been overlooked. At the same time, 
by keeping the administrative expense in features 
as outlined herewith, it is possible to watch it 
closely and if it gets beyond the amount justified 
by the magnitude of the job, proper treatment 
may be immediately given. 

ADMINISTRATIVE — Expense of State Highway 
Commission, 1 to 20 

In view of the fact that the commissioners are 
appointed from the congressional districts, the 
numbers will hold good continuously, regardless 
of the changes made in the personel of the com- 
mission—except that a record should be made at 
the time of changing commissioners and the 
month in which final expense statement is ren- 
dered, as to how much of the charge is against the 
old and how much against the new commissioner. 

1. Special engineering. 

2. Expense accounts and salaries, employees on special 

work for commission. 

3. Expense account and salary commissioner from first 

district. 

41 



4. Mileage account commissioner from first district. 

5. Expense account and salary commissioner from second 

district. 

6. Mileage account commissioner from second district. 

7. Expense account and salary commissioner from third 

district. 

8. Mileage account commissioner from third district. 

9. Salary secretary to commission. 

10. Expense account secretary to commission 

11. Mileage account secretary to commission. 

12. Premium on bonds issued by commission. 

13. Labor, materials and supplies, maps and blue printing. 

14. Labor, materials and supplies, photography. 

15. Labor, materials and supplies, clerical. 

16. Telephone and telegraph charges. 

17. Freight and express charges. 

18. Seal of commission, electrotypes, etc. 
19. 

20. Depreciation on equipment. 

ADMINISTRATIVE — General, 21 to 75 

21. Salaries — State Engineer. 

22. Salaries — Chief Deputy State Engineer. 

23. Salaries — expert engineering. 

24. Salaries — other engineering. 

25. Salaries — drafting. 

26. Salaries — clerical. 

27. Salaries — stenographic. 

28. Salaries — leave of absence with pay. 

29. Salaries — other than above. 

30. Printing bonds and interest on them. 

31. Travel and livery expense — State Engineer. 

32. Travel and livery expense — Chief Deputy State Engi- 

neer. 

44. Travel and livery expense — expert engineering. 

34. Travel and livery expense — clerical and stenographic. 

35. Travel and livery expense — miscellaneous. 

36. Travel and livery expense — other engineering. 

37. Labor, materials and supplies — blue printing. 

38. Labor, materials and supplies — printing and advertis- 

ing. 

39. Labor, materials and supplies — engineering manual. 

40. Labor, materials and supplies — accounting manual. 

41. Labor, materials and supplies — rental motor vehicles. 

42. Labor, materials and supplies — printing, binding and 

cuts (annual report). 

43. Labor, materials and supplies — annual report (other 

than above). 

44. Labor, materials and supplies — reports (other than 

annual) . 

42 



45. Labor, materials and supplies — general road map of 

State. 

46. Labor, materials and supplies — road laws. 

47. Labor, materials and supplies — cameragraph. 

48. Labor, materials and supplies — dictaphone. 

49. Labor, materials and supplies — repairs to equipment. 

50. Labor, materials and supplies — legal matters. 

51. Labor, materials and supplies — photography. 

52. Labor, materials and supplies — exhibits. 

53. Labor, materials and supplies — general information 

for future work. 

54. Labor, materials and supplies — light, fuel, ice and 

water. 

55. Labor, materials and supplies — testing materials. 

56. Labor, materials and supplies — mimeograph. 

57. Labor, materials and supplies — standard specification. 

58. Labor, materials and supplies — notary public commis- 

sion. 

59. Material and supplies — engineering and construction 

(field). 

60. Material and supplies — engineering and construction 

(office) . 

61. Material and supplies — accounting and timekeeping 

(field). 

62. Material and supplies — accounting and timekeeping 

(office). 

63. Material and supplies — stock (requisition from field 

to be filled from this "stock" and account number 
credited) . 

64. Material and supplies — 

65. Material and supplies — 

66. Material and supplies — 

67. Blue prints purchased (outside). 

68. Postage. 

69. Telephone and telegraph. 

70. Freight and express. 

71. Rental of equipment. 

72. Purchase of equipment. 

73. Books and publications. 

74. Workmen's Compensation Act. 

75. Depreciation on equipment. 

ADMINISTRATIAE — Bridge Department, 76 to 110 

76. Salaries — engineering. 

77. Salaries — drafting. 

78. Salaries — blue printing. 

79. Salaries — stenographic and clerical. 

80. Salaries — leave of absence with pay. 

81. Salaries — inspection of bridges. 

43 



82. Salaries — miscellaneous. 

83. Salaries — 

84. Labor, materials and supplies — cameragraph. 

85. Labor, materials and supplies — repairs to equipment. 

86. Labor, materials and supplies — printing and adver- 

tising. 

87. Labor, materials and supplies — photography. 

88. Labor, materials and supplies — exhibits. 

89. Labor, materials and supplies — light, fuel, ice and 

water. 

90. Labor, materials and supplies — mimeographing. 

91. Material and supplies — blue printing. 

92. Material and supplies — office use. 

93. Material and supplies — field use. 

94. Material and supplies — books and publications. 

95. Material— 

96. Material— 

97. Travel and livery. 

98. Rental of equipment. 

99. Telegraph and telephone. 

100. Freight and express. 

101. Postage. 

102. Purchase of equipment and cabinets. 

103. Workmen's Compensation Act. 

104. Labor, material and supplies — bridge manual. 

105. Labor, material and supplies — bridge standards. 

106. Labor, material and supplies — bridge tests. 
107. 

108. 
109. 

110. Depreciation on equipment. 

ADMINISTRATIVE — Auditing Department, 111 to 135 

111. Salaries — accountants and stenographers. 

112. Salaries — miscellaneous. 

113. Salaries — leave of absence with pay. 

114. Labor, materials and supplies — printed forms. 

115. Labor, materials and supplies — binders. 

116. Labor, materials and supplies — repairs to equipment. 

117. Labor, materials and supplies — printing and adver- 

tising. 

118. Labor, materials and supplies — exhibits. 

119. — Labor, materials and supplies — bulletins, books and 
publications. 

120. Labor, materials and supplies — 

121. Labor, materials and supplies — 

122. Labor, materials and supplies — 

123. Material and supplies — office. 

124. Material and supplies — miscellaneous. 

125. Material and supplies — 

44 



126. Travel and livery. 

127. Rental of equipment. 

128. Purchase of equipment. 

129. Telephone and telegraph. 

130. Freight and express. 

131. Workmen's Compensation Act. 

132. Labor (miscellaenous) . 

133. Surety bonds. 
134. 

135. Depreciation on equipment. 



45 



AUTOMOBILES AND TRUCKS 



As motor vehicles are purchased, they are listed 
consecutively beginning with No. 1, in the "Motor 
Vehicle Register." A full description is contained 
in this register, which is kept open and added to 
continuously as changes develop. A record of 
costs covering the operation of each car is kept 
separately. A report of mileage (reading of the 
speedometer monthly) and the amount of gasoline 
in the tank on the last day of each month is re- 
ported to the general office. This record is checked 
from time to time by field inspectors or others 
charged with that duty. By this method careless 
drivers are detected and may be educated or 
disciplined as the case seems to merit. The total 
cost of operation of cars, together with deprecia- 
tion costs are charged in a lump sum monthly to 
the features benefitting. Following will be found 
four examples of records from the "Motor Vehicle 
Register." The number given the motor vehicle 
is used as a prefix with the numbers in the follow- 
ing feature, Nos. 136 to 150. 

1. New Jeffery Roadster, Model 671. No. 90,249. 1919 
license No. 45464. Purchased January 1, 1919, from Port- 
land Motor Car Company for the use of the State High- 
way Engineer. Price $1568.00. No extra rims or parts. 
September 1, 1919, transferred to Bridge Engineer. Should 
be charged to Bridge Department operation from Septem- 
ber 1, 1919. 

2. New Reo Touring car model No. 5. Factory and 
motor No. R 10,587. 27.2 h. p. Purchased from North- 
west Auto Company, September 10, 1916. $1275.00. Used 
by John H. Robbins, division engineer, Muitnomah county 
line, on Columbia River Highway to Astoria. All charges 
should be against this division. License No. 1496. 

46 



3. New Chevrolet Baby Grand Touring Car. Engine 
No. 3183. Body No. B-2041. Factory No. 1-1449. Price 
$1265.00 F. 0. B. Pendleton, Oregon. Purchased July 1, 
1919, from C. & F. Motor Company. For use of Division 
Engineer Pendleton Division. License No. 189675. 

4. New Packard Five Ton Truck No. 124234 purchased 
from Portland Motor Truck Company August 10, 1917 
$5400.00. License No. 439756. Shipped to Siskiyou Di- 
vision September 1, 1917. All charges should be against 
Siskiyou grade. July 1, 1918, transferred to Central Ore- 
gon Division. All charges should be against this division 
from above date until further notice. 

Feature Numbers, 136 to 150 

The index numbers given motor trucks in the 
motor vehicle register are used as prefixes with 
the following feature numbers. The motor vehicle 
prefix numbers will only be used with the motor 
vehicle feature numbers 136 to 150 so that there 
can be no confusion even though the same num- 
bers may be designated as prefix numbers else- 
where. Cars should always be known and referred 
to by index and license numbers. 

136. Extra parts, rims, repair parts, etc. 

137. Tires, patches, shoes, linings, tire repair kits, etc. 

138. Gasoline. 

139. Lubricants, oils, polish, etc. 

140. Rental of garage space. 

141. Labor, repairs, cleaning and general overhauling. 

142. License. 

143. Labor — miscellaneous. 

144. Materials and supplies — miscellaneous. 

145. Insurance. 

146. Freight and express. 

147. Chauffeur salary and expense. 
148. 

149. 

150. Depreciation charges. 

An example as to the use of the prefix and num- 
ber follows : If gasoline is purchased for the use 
of the "New Chevrolet Baby Grand Touring Car" 
the charge on the invoice is simply marked 

47 



"3 — 138." If a general overhauling is given the 
New Reo Touring car, it is noted on the invoice 
thus, "2 — 141," or if rental of garage space is paid 
(and this covers nightly rental when on a continu- 
ous trip as well as monthly rental if car is kept in 
one place) it is noted on invoice thus "2 — 140." 

The monthly report from one in charge of the 
machine should contain the reading of the speed- 
ometer on the last day of the month, the amount 
of gasoline in tank and if the speedometer has been 
out of order any portion of the mqnth, an estimate 
of the mileage not registered should be made. Also 
the quantity of gasoline used, if in districts where 
the price varies and this information cannot be 
arrived at by the price paid. 

The costs usually are kept in three parts. Cost 
of gasoline and quantity used, to determine the 
miles per gallon of gas. General operation cost, 
excluding gasoline, which includes depreciation, 
and in fact all the items contained in feature 
numbers except 136, 138, 146 and 147. Then we 
have left the charges for new parts and if a 
chauffeur is employed, his salary and expense 
should be kept separated from the others, as it is 
the true running cost of the machine which is 
desired. All the above expenses may be added to- 
gether, without the chauffeur's salary and ex- 
pense item and the operating expense per mile is 
available. If it appears out of proportion with 
others operated under what is considered as on a 
similar basis, then an analysis is made, comparing 
each of the segregations to determine which one 
is the faulty one. When that is determined, then 
the invoices may be investigated and proper and 

48 



intelligent action based on determined facts, may 
be taken. We frequently know when looking at a 
situation as a whole that "something" is wrong. 
Correction of a fault, however, requires that it 
first be definitely located. 

General — Field, 151 to 195 

This feature has the relation to features of one 
section of the work that administrative features 
have to all the projects. To this feature all field 
overhead charges which can not be properly 
entered against each definite unit of the work in 
the section should be made. For instance, the one 
in charge of the section, which may comprise a 
considerable territory and numerous features, may 
decide to open an office for the handling of this 
work at one of the centrally located camps or at a 
town conveniently situated. His time and that of 
several assistants is so divided among the various 
units of the work that it would be impracticable 
to attempt a segregation of charges on a basis of 
actual time devoted to each feature. The time of 
such employes is therefore all carried in this "Gen- 
eral — Field" feature; also personal expense ac- 
counts and cost of maintaining the office is 
charged here and prorated quarterly on a percent- 
age basis to each unit of the section. If it so hap- 
pens that a section has only one active feature, as 
"Construction Sub-Grade," for example, and all 
work in the section is confined to one job, there is 
no use for the feature "General — Field," all 
charges being made direct to items provided in the 
feature "Construction Sub-Grade." It will be 
noted that each of the permanent construction 
features following has an item "general charges 

49 



prorated" for the receiving of their share of the 
prorated cost of the section "Administrative 
Expense." 

151. Salaries — field engineering. 

152. Salaries — office engineering. 

153. Salaries — accounting and timekeeping. 

154. Salaries — stenographic, 

155. Salaries — janitor service (or bull cook). 

156. Salaries — leave of absence with pay. 

157. Salaries — 

158. Material and supplies — stationery (engineering and 

construction). 

159. Material and supplies — stationery (accounting and 

timekeeping) . 

160. Material and supplies — engineering and construction. 

161. Material and supplies — accounting and timekeeping. 

162. Material and supplies — 

163. Labor, materials and supplies — light, fuel, ice and 

water. 

164. Labor, materials and supplies — reports. 

165. Labor, materials and supplies — printed forms. 

166. Labor, materials and supplies — exhibits. 

167. Labor, materials and supplies — testing materials. 

168. Labor, materials and supplies. 

169. Labor, materials and supplies — specifications and 

plans. 

170. Labor, materials and supplies — photography, en- 

largements, etc. 

171. Labor, materials and supplies — electrotypes and cuts. 

172. Labor, materials and supplies — storing equipment. 

173. Labor, materials and supplies — storing equipment. 

173. Labor, materials and supplies and rental motor 

vehicles. 

174. Labor, materials and supplies — commissary. 

175. Labor, materials and supplies — advertising. 

176. Labor, materials and supplies — legal. 

177. Labor, materials and supplies — repairs to equipment 

(engineering and construction). 

178. Labor, materials and supplies — repairs to equipment 

(accounting and timekeeping). 

179. Labor, materials and supplies — 

180. Labor, materials and supplies — 

181. Labor, materials and supplies — 

182. Postage. 

183. Travel and livery. 

184. Rental of quarters. 

185. Rental of equipment. 

186. Purchase of equipment. 

187. Moving quarters. 

50 



188. Telephone and telegraph. 

189. Freight, express and parcels post. 

190. Rooms and board (not classified as travel expense). 

191. Workmen's Compenation Act. 

192. Books and publications. 
193. 

194. Administrative charges prorated. 

195. Depreciation on equipment. 

Camp Construction, 196 to 225 

This feature includes all charges for construc- 
tion of men's quarters, office and outbuildings 
required in the average camp, except the mess- 
house, root and meat houses, blacksmith shop and 
corral, which are covered separately in the 
features following. One item is intended to cover 
all maintenance charges. If more segregation of 
this item is desired, a separate feature can be 
made for "Camp Maintenance." The tearing down 
of structures, as well as constructing them and the 
clearing up of site when work has been completed 
is included under this feature. Total charges to 
this feature should be prorated quarterly to 
features benefited. An item to cover this charge 
will be found in each of the permanent construc- 
tion features following. 

(Includes office, bunkhouses, outhouses, etc., only.) 

196. Salaries — engineering. 

197. Salaries — draftsman. 

198. Salaries — accounting and timekeeping. 

199. Salaries — miscellaneous. 

200. Salaries— 

201. Labor — superintendence. 

202. Labor — carpenters and helpers. 

203. Labor — clearing and preparing site. 

204. Labor — taking down camp and cleaning up site. 

205. Labor — sewer and water systems. 

206. Labor — fencing. 

207. Labor. 

208. Materials and supplies — lumber. 

209. Materials and supplies — tents. 

51 



210. Materials and supplies — hardware. 

211. Materials and supplies — fencing. 

212. Materials and supplies — sewer and water systems. 

213. Materials and supplies — miscellaneous. 

214. Materials and supplies — roofing. 

215. Labor, materials and supplies — moving. 

216. Labor, materials and supplies — maintenance of camp. 

217. Labor, materials and supplies — 

218. Rental of grounds. 

219. Freight and express. 

220. Purchase of equipment. 

221. Rental of equipment. 

222. Workmen's Compensation Act. 
223. 

224. 

225. Depreciation on equipment. 

Messhouse Construction and Operation, 226 to 245 

This feature usually is considered a commercial 
enterprise, therefore charges and credits should 
be kept entirely separated from other features. 
Frequently supplies purchased for mess consump- 
tion are sold to employes whose families are on or 
near the work. For such credits No. 237 is in- 
tended. This is for projects on which a regular 
mercantile store is not operated. If the mess is 
not operated as a commercial feature, then the 
profit or loss, as the case may be, should be 
credited or charged quarterly to the permanent 
construction features. 

226. Labor — cooks and helpers. 

227. Subsistence. 

228. Supplies. 

229. Fuel, light, water and ice. 

230. Rental of quarters. 

231. Rental of equipment. 

232. Purchase of equipment. 

233. Repairs and renewals. 

234. Freighting and express. 

235. Labor, materials and supplies — construction of mess- 

house and dining-room. 

236. Labor, materials and supplies — construction of root 

and meat houses. 

237. Credit for meals and sales from messhouse stock. 

52 



238. Workmen's Compenation Act. 

239. Moving outfit. 
240. 

241. 
242. 
243. 
244. 

245. Depreciation on equipment. 

Construction and Operation Corrals, 246 to 265 

This feature, as with mess operation, is fre- 
quently a commercial enterprise, and construction, 
operation and other expenses connected therewith 
should be kept entirely separated from other 
features. When not operated as a commercial 
feature, the profit or loss should be credited or 
charged, as the case may be, to the permanent 
construction features. This distribution of profit 
or loss should be on a percentage basis. 

246. Labor — corral man. 

247. Labor — freighting and handling. 

248. Labor — shoeing. 

249. Labor — repairs to harness. 

250. Labor — repairs to wagons, etc. 

251. Labor — repairs to building, fences, etc. 

252. Labor — veterinary. 

253. Materials and supplies — hay, grain, etc. 

254. Materials and supplies — drugs, etc. 

255. Materials and supplies — 

256. Rental of shelter, pasture, etc. 

257. Rental of stock. 

258. Rental of equipment. 

259. Purchase of equipment. 

260. Purchase of stock. 

261. Taxes. 

262. Labor, materials and supplies' — construction of 

corral. 

263. Workmen's Compenation Act. 
264. 

265. Depreciation on equipment. 

Construction and Operation Blacksmith Shop, 266 to 285 

Two plans of operation for the blacksmith shop 
are recommended: 

1. On a commercial basis, by which a certain 

53 



set price schedule is made and all work handled by 
the blacksmith shop charged according to definite 
rates, these rates to be made sufficiently high to 
cover all overhead, materials, supplies, equipment 
and loss of time between jobs for which payment 
must be made. 

2. The actual costs of labor, material, supplies 
and equipment necessary for the operation of shop 
prorated to the various permanent projects. 

Ordinarily the first method is preferable, and, 
when a carefully planned schedule of prices is 
made up, results in very accurate cost data. The 
profit or loss under this method of operation 
should be prorated to the permanent construction 
features as a charge or credit, as the case may 
warrant. 

On the smaller jobs, where the blacksmith work 
is of small volume and there is little or no large 
machinery on the project, the second method is 
used with considerable satisfaction. 

266. Labor — blacksmith. 

267. Labor — blacksmith helpers. 

268. Labor — carpenters and helpers. 

269. Labor — miscellaneous. 

270. Labor. 

271. Labor, materials and supplies — construction of build- 

ing and setting up equipment. 

272. Labor, materials and supplies — moving quarters. 

273. Steel. 

274. Materials. 

275. Supplies. 

276. Fuel, light and water. 

277. Freight and express. 

278. Rental of equipment. 

279. Purchase of equipment. 

280. Rental of grounds. 

281. Workmen's Compensation Act. 
282. 

283. 
284. 
285. Depreciation on equipment. 

54 



Storehouse Charges, 286 to 305 

When a project is of sufficient size to warrant 
the services of a regular storekeeper and property 
man, a storehouse for the storage of material, sup- 
plies and equipment is usually maintained. All 
goods for the project are received by the store- 
keeper and issued to the work on requisitions 
signed by the representative of the one authorized 
to receive goods and on which has been placed 
the account numbers to which the charges should 
be made. At the close of the month, when the 
storehouse stock is inventoried, the storekeeper 
must account for the goods on hand at the begin- 
ning of the month and those received during the 
month. The inventory of the close of the month, 
plus summary of charges by account numbers of 
goods issued during the month (which record is 
verified by requisitions properly signed by men 
on the work authorized to receive goods), should 
make this balance. 

Two methods of handling storehouse charges 
are recommended: 

1. Storehouse administrative expense includes 
salary of storekeeper and other storehouse em- 
ployes, rental or cost of building, freight on ma- 
terial, supplies and equipment to storehouse, and 
the freighting from storehouse to the work. A 
certain estimated charge is also made to cover 
shrinkage, leakage, breakage, etc. A price list of 
the goods handled is made up and the cost in- 
creased sufficiently to include this and all the 
above administrative charges. Charges to the 
work for supplies furnished from the storehouse 
are made on this basis. This arrangement should 



55 



result in a small profit for the storehouse. If it 
does, this profit can be prorated quarterly on a 
percentage basis as a credit to the ' 'Permanent 
Construction" features. If the result is a loss, it 
should be charged in the same manner. 

2. By this method supplies, materials and equip- 
ment will be charged out to the work at their 
actual cost, plus freight. The expense of operating 
storehouse, including all the items in the first 
method above mentioned, is prorated on a percent- 
age basis to the "Permanent Construction" fea- 
tures. 

286. Salaries. 

287. Labor — freighting. 

288. Goods spoiled, broken or leaked. 

289. Labor — repairs to building. 

290. Labor — erection of building. 

291. Labor — miscellaneous. 

292. Materials and supplies — repairs to building. 

293. Materials and supplies — erection of building. 

294. Rental of quarters. 

295. Rental of equipment. 

296. Purchase of equipment. 

297. Repairs to equipment. 

298. Telephone and telegraph charges. 

299. Freight and express charges. 

300. Light, fuel and water. 

301. Materials and supplies — miscellaneous. 
302. 

303. 
304. 

305. Depreciation on equipment. 

Surveys (Preliminary, Location and 
Land Ties), 306 to 340 

This feature is self-explanatory and all charges 
incident to surveys on location, up to the time 
that actual work has begun on the next feature, 
"Right of Way" should be charged to it. 

306. Salaries — preliminary transit line. 

307. Salaries — preliminary level line. 

308. Salaries — preliminary topography. 

56 



309. Salaries — preliminary drafting. 

310. Labor, materials and supplies — livery and travel. 

311. Materials and supplies — 

312. General reconnaissance. 

313. Salaries — location (transit party) . 

314. Salaries — location (level party) . 

315. Salaries — location (topography party) . 

316. Salaries — location (drafting) . 

317. Salaries — location (digging test pits). 

318. Salaries — location (bridges and culverts). 

319. Salaries — location (sounding for grade). 

320. Salaries — location (estimates). 

321. Labor, materials and supplies — livery and travel. 

322. Materials and supplies — 
323 Room and board. 

324. Salaries — land ties (office labor) . 

325. Salaries — land ties (field labor) . 

326. Salaries — land ties (drafting). 

327. Labor, materials and supplies — livery and travel. 

328. Materials and supplies — land ties. 

329. Labor, materials and supplies — mapping old roads. 
330. 

331. Rental of quarters. 

332. Rental of equipment. 

333. Purchase of equipment. 

334. Telephone and telegraph. 

335. Leave of absence with pay. 

336. Workmen's Compensation Act. 
337. 

338. 
339. 

340. Depreciation on equipment. 

Right of Way, 341 to 380 

Against this feature should be charged all ex- 
pense of securing right of way, grubbing, clearing, 
burning brush and fencing, and other expenses up 
to the point of "Construction of Sub-Grade." It 
is frequently the case that portions of work 
chargeable to this feature are left until the con- 
struction on sub-grade is started or perhaps com- 
pleted. Such items as burning brush and logs and 
building fence are in this class. The charges, re- 
gardless of when the work may be done, should be 
to the "Right of Way" feature. This is consid- 



ered one of the "Permanent Construction" 
features to which administrative charges are pro- 
rated. 

341. Salaries — engineering. 

342. Salaries — drafting. 

343. Salaries — accounting and timekeeping. 

344. Labor- — superintendence. 

345. Labor — clearing (by hand). 

346. Labor — grubbing. 

347. Labor — clearing and grubbing (donkey engine). 

348. Labor — repairs to equipment. 

349. Labor — fencing. 

350. Labor — piling and burning brush and logs. 

351. Labor — fighting fire. 

352. Labor— 

353. Materials and supplies — explosives. 

354. Materials and supplies — repairs to equipment. 

355. Materials and supplies — clearing and grubbing 

(hand), 

356. Materials and supplies — clearing and grubbing 

(donkey engine). 

357. Materials and supplies — office (engineering and con- 

struction) . 

358. Materials and supplies — office (accounting and time- 

keeping) . 

359. Materials and supplies — fencing. 

360. Materials and supplies — burning and piling brush. 

361. Materials and supplies — fighting fire. 
362. 

363. Purchase of land. 

364. Payment of damages. 

365. Rental and lease of land. 

366. Travel and livery. 

367. Legal expense. 

368. Rental of equipment. 

369. Telephone and telegraph charges. 

370. Freight and express. 

371. Advertising. 

372. Purchase of equipment. 
373. 

374. Workmen's Compensation Act. 

375. Contractor's earnings. 

376. Prorated charges — construction and maintenance 

(camp) . 

377. Prorated charges — construction and maintenance 

(corral) . 

378. Prorated charges — construction and maintenance 

(mess) . 

58 



379. Prorated charges — general. 

380. Depreciation on equipment. 

Construction of Sub-Grade, and Spreading 

and Rolling Crushed Hock and Gravel, 381 to 450 

This feature should include all charges for the 
grading of the road, as provided for in previous 
features, after right of way has been cleared and 
grubbed. The cost of surfacing with crushed rock 
or gravel to the point when a permanent hard 
surface is laid should also be charged against this 
feature. When an interval elapses between the 
time of making grade and applying of hard sur- 
facing material, which is usually the case, all 
charges for resurfacing and putting grade in con- 
dition for the receiving of the hard surface, in- 
cluding additional rock, sand and gravel for this 
purpose, should be included in the above feature. 
This is considered one of the "Permanent Con- 
struction" features to which administrative 
charges are prorated. 

381. Salaries — engineering. 

382. Salaries — drafting. 

383. Salaries — accounting and timekeeping. 

384. Salaries— 

385. Salaries — 

386. Labor — superintendence. 

387. Labor — plowing. 

388. Labor — excavation (hand). 

389. Labor — excavation (other than by hand). 

390. Labor — repairs to equipment. 

391. Labor — tool sharpener. 

392. Labor — ditching and draining. 

393. Labor — soaking. 

394. Labor — rolling. 

395. Labor — disposing of slides. 

396. Labor — tractors. 

397. Labor — freighting materials and handling. 

398. Labor — carpenter work. 

399. Labor — cribbing. 

400. Labor — falsework. 

401. Labor — finishing. 

59 



402. 
403. 
404. 
405. 
406. 

407. 
408. 
409. 
410. 
411. 
412. 

413. 
414. 
415. 
416. 
417. 
418. 
419. 
420. 
421. 
422. 
423. 
424. 
425. 
426. 

427. 
428. 
429. 
430. 
431. 
432. 
433. 
434. 
435. 
436. 
437. 
438. 
439. 
440. 
441. 
442. 
443. 
444. 

445. 
446. 



Labor — drilling and powder man. 

Labor — guard rails. 

Labor — hauling gravel and crushed stone. 

Labor — spreading gravel and crushed stone. 

Labor — helper team (hauling autos over new con- 
struction) . 

Labor — 

Labor, materials and supplies — road grader work. 
Labor, materials and supplies — grade crossings. 
Labor, materials and supplies — maintenance. 
Labor, materials and supplies — 

Materials and supplies — explosives. 

Materials and supplies — ditching and draining. 

Materials and supplies — soaking. 

Materials and supplies — rolling. 

Materials and supplies — disposing of slides. 

Materials and supplies — lumber. 

Materials and supplies — cement. 

Materials and supplies — repairs to equipment. 

Materials and supplies — tool sharpener. 

Materials and supplies — fuel, light and water. 

Materials and supplies — falsework. 

Materials and supplies — finishing. 

Materials and supplies — crushed rock and gravel. 

Materials and supplies — spreading crushed rock and 

gravel. 
Materials and supplies — guard rails. 
Materials and supplies — miscellaneous. 
Materials and supplies — survey stakes. 
Materials and supplies — 
Purchase of equipment. 
Rental of equipment. 
Travel and livery. 
Legal expense. 
Telephone and telegraph. 
Freight and express. 
Advertising. 
Freight on equipment. 
Moving and storing equipment. 



Workmen's Compensation Act. 

Contractor's earnings. 

Prorated charges — construction and maintenance 

(camp) . 
Prorated charges — construction and maintenance 

(corral). 



r>o 



447. Prorated charges — construction and maintenance 

(mess) . 

448. Prorated charges — industrial railway operation. 

449. Prorated charges — general. 

450. Depreciation on equipment. 

Rtfprapping, 451 to 490 

This feature includes all charges for riprapping 
of grades and other places along the highway, 
except those directly connected with and a part 
of the bridge and culvert work. This feature is 
intended to include the entire operation of rip- 
rapping, getting out rock, hauling and other pre- 
liminary work necessary to make a finished job. 
This is considered one of the "Permanent Con- 
struction" features to which administrative 
charges are prorated. 

451. Salaries — engineering. 

452. Salaries — drafting. 

453. — Salaries — accounting and timekeeping. 

454. Salaries — 

455. Labor — superintendence. 

456. Labor — preliminary and drainage. 

457. Labor — excavation (hand). 

458. Labor — excavation (other than by hand). 

459. Labor — getting out rock. 

460. Labor — freighting and placing rock. 

461. Labor — backfill. 

462. Labor — repairs to equipment. 

463. Labor— 

464. Materials and supplies — lumber. 

465. Materials and supplies — stone and gravel. 

466. Materials and supplies — cement and lime. 

467. Materials and supplies — explosives. 

468. Materials and supplies — pipe and tile. 

469. Materials and supplies — hardware. 

470. Materials and supplies — repairs to equipment. 

471. Materials and supplies — 

472. Rental of equipment. 

473. Purchase of equipment. 

474. Freight and express. 

475. Travel and livery. 

476. Legal expense. 

477. Telephone and telegraph. 

478. Advertising. 

61 



479. Freight on equipment. 

480. Moving and storing equipment. 

481. Workmen's Compensation Act. 

482. Contractor's earnings. 
483. 

484. 

485. Prorated charges — construction and maintenance 

(camp) . 

486. Prorated charges — construction and maintenance 

(corral). 

487. Prorated charges — construction and maintenance 

(mess). 

488. Prorated charges — industrial railway operation. 

489. Prorated charges — general. 

490. Depreciation on equipment. 

Gravel Screening and Rock Crushing Plant, 491 to 535 

This feature covers all charges necessary to pro- 
duce crushed rock and; gravel up to the point of 
delivering the finished product to conveyances at 
the plant. Items covering the cost of hauling 
from the crusher and spreading on the grade are 
contained in "Construction Sub-Grade" feature. 
This is considered to have such relationship with 
the "Permanent Construction" features that ad- 
ministrative charges are prorated against it. 

491. Salaries — engineering. 

492. Salaries — draftsman. 

493. Salaries — accounting and timekeeping. 

494. Salaries — checker and loader at bins. 

495. Labor — superintendence. 

496. Labor — erecting plant. 

497. Labor — drilling and blasting. 

498. Labor — handling materials. 

499. Labor — stripping pit. 

500. Labor — crushing. 

501. Labor — repairs to equipment. 

502. Labor — tool sharpener. 

503. Labor — repairs and work on pit. 

504. Labor — moving equipment. 

505. Labor — hauling fuel for crusher. 

506. Materials and supplies — lumber. 

507. Materials and supplies — nails, bolts, hardware, etc. 

508. Materials and supplies — repairs to equipment. 

509. Materials and supplies — explosives. 

510. Materials and supplies — tool sharpener. 

62 



511. Materials and supplies — drill steel. 

512. Materials and supplies — engine oil, lubricants, etc. 

513. Materials and supplies — fuel, light and water. 
514. 

515 
516. 

517. Royalties on crushed rock. 

518. Rental of equipment. 

519. Purchase of equipment. 

520. Freight and express. 

521. Travel and livery. 

522. Legal expense. 

523. Telephone and telegraph. 

524. Advertising. 

525. Freight on equipment. 

526. Moving and storing equipment. 

527. Workmen's Compensation Act. 

528. Contractor's earnings. 
529. 

530. Prorated charges — construction and maintenance 

(camp). 

531. Prorated charges — construction and maintenance 

(corral). 

532. Prorated charges — construction and maintenance 

(mess). 

533. Prorated charges — industrial railway operation. 

534. Prorated charges — general. 

535. Depreciation on equipment. 

Operation Industrial Railway, 536 to 560 

This feature has a very close relationship and is 
frequently considered as subsidiary to several 
other features. There are, however, several rea- 
sons for making it a separate unit: 

1. It is comprised of considerable costly equip- 
ment which is a unit in itself. 

2. It is used wholly or in part by several fea- 
tures of the project at short intervals, which 
necessitates an arbitrary division of costs such as 
prorating on a percentage or other basis rather 
than actual. 

3. Cost of delivery of materials is a very good 
segregation for a permanent record. 

63 



This feature is intended to include cost of any 
service for which the plant may be fitted. On the 
completion of the work charges may still be car- 
ried as a separate feature, or they can be prorated 
on some equitable basis to the features benefiting. 

536. Salaries — engineering. 

537. Salaries — draftsman. 

538. Salaries — accounting and timekeeping. 

539. Labor — driving engine. 

540. Labor — brakeman. 

541. Labor — section man. 

542. Labor — greasing cars. 

543. Labor — repairs to equipment. 

544. Labor — laying and removing track. 

545. Labor — loading cars. 

546. Labor — freight and handling equipment. 

547. Labor — 

548. Labor, materials and supplies — fuel and oil. 

549. Materials and supplies — repairs to equipment. 

550. Materials and supplies — freight and handling. 

551. Materials and supplies — water and light. 
552. 

553. 

554. Rental of equipment. 

555. Purchase of equipment. 

556. Legal expense. 

557. Storing equipment. 

558. Contractor's earnings. 

559. Workmen's Compensation Act. 

560. Depreciation on equipment. 

Hard Surface (Concrete), 561 to 615 

This feature covers the assembling, erection and 
operation of concrete plant and all charges con- 
nected with laying of hard surface. Charges inci- 
dent to preparing sub-grade for hard surfacing 
should be made against "Construction Sub- 
Grade." Scarifying old macadam would be such 
a charge. This is considered a "Permanent Con- 
struction" feature, and to it should be prorated its 
share of administrative charges. 

561. Salaries — engineering. 

562. Salaries — draftsman. 

563. Salaries — accounting and timekeeping. 

64 



.564. Labor — superintendence. 

565. Labor — making and placing forms. 

566. Labor — removing forms. 

567. Labor — mixing and pouring concrete. 

568. Labor — expansion joints. 

569. Labor — finishing surface. 

570. Labor — protecting, covering and sprinkling. 

571. Labor — watchman. 

572. Labor — shaking and binding empty sacks. 

573. Labor — hauling and placing water pipe. 

574. Labor — removing water pipe. 

575. Labor — pumping. 

576. Labor — repairs to equipment. 

577. Labor — roiling and smoothing sub-grade. 

578. Labor — unloading, handling and hauling cement. 

579. Labor — unloading, handling and hauling sand and 

gravel. 

580. Labor — shoulders. 

581. Labor — scarifying old macadam road. 

582. Labor — speading sand and gravel. 
583. 

584. Materials and supplies — lumber. 

585. Materials and supplies — cement. 

586. Materials and supplies — explosives. 

587. Materials and supplies — sand and gravel (roadway) 

588. Materials and supplies — sand and gravel (shoulders) 

589. Materials and supplies — lubricating and fuel oil. 

590. Materials and supplies — water, fuel and light. 

591. Materials and supplies — repairs to equipment. 

592. Materials and supplies — 

593. Labor, materials and supplies — testing cement and 

other materials. 
594. 

595. Travel and livery. 

596. Freight and express on sand and rock. 

597. Freight and express on cement. 

598. Freight and express on lumber. 

599. Freight and express on incidentals. 

600. Advertising. 

601. Rental of equipment. 

602. Purchase of equipment. 

603. Legal expense. 

604. Telephone and telegraph. 

605. Freight and express on equipment. 

606. Moving and storing equipment. 

607. Workmen's Compensation Act. 

608. Contractor's earnings. 
609. 

610. Prorated charges — construction and maintenance 
(camp). 

fi5 



611. Prorated charges — construction and maintenance 

(corral). 

612. Prorated charges — construction and maintenance 

(mess). 

613. Prorated charges — industrial railway operation. 

614. Prorated charges — general. 

615. Depreciation on equipment. 

Setting Up and Operating Paving Plant 
(Asphaitic Surface), 616 to 670 

This feature covers the manufacture of any 
asphaitic combination, hard surfacing material, 
such as asphaitic concrete, bitumen, Warrenite, 
bitulithic, Topeka mix, etc. All charges incident 
to the manufacture of asphaitic surfacing ma- 
terial, up to the time the finished product is 
dumped into the conveyances for delivery to the 
job, should be made against this feature. The 
hauling charge for the manufactured product 
from point of delivery is made against the feature 
following — (Paving — Asphaitic) . 

This is considered so nearly related to "Perma- 
nent Construction" feature that prorated charges 
for administrative expense are made against it. 

616. Salaries — engineering. 

617. Salaries — drafting. 

618. Salaries — accounting and timekeeping. 

619. Labor — superintendence. 

620. Labor — erection and assembling plant and equip- 

ment. 

621. Labor — maintenance and repairs to equipment. 

622. Labor — steam engineer. 

623. Labor — asphaitic aggregate and mixture control. 

624. Labor — watchman. 

625. Labor — fuel, water and light. 

626. Labor — unloading and handling sand, crushed rock 

and gravel. 

627. Labor — laboratory. 

628. Labor — dismantling and storing or shipping plant. 

629. Labor — asphalt. 

630. Labor — mixing crushed rock, gravel and sand. 

631. Labor — cement. 
632. 

633. Materials and supplies — screenings 

66 



634. Materials and supplies — sand. 

635. Materials and supplies — gravel. 

636. Materials and supplies — erection and assembling 

plant and equipment. 

637. Materials and supplies — maintenance and repairs 

to plant and equipment. 

638. Materials and supplies — fuel, water and light. 

639. Materials and supplies — lubricants and oil. 

640. Materials and supplies — laboratory. 

641. Materials and supplies — asphalt. 

642. Materials and supplies — crushed rock. 

643. Materials and supplies — cement. 

644. Materials and supplies — lumber. 

645. Materials and supplies — miscellaneous. 

646. Purchase of equipment (construction and engineer- 

ing). 

647. Purchase of equipment (laboratory). 

648. Rental of equipment (laboratory) . 

649. Rental of equipment (construction and engineering). 

650. Rental or purchase of site for plant. 

651. Freight and express on asphalt. 

652. Freight and express on sand and gravel. 

653. Freight and express on plant. 

654. Freight and express on miscellaneous. 

655. Advertising. 

656. Legal expense. 

657. Telephone and telegraph. 

658. Workmen's Compensation Act. 

659. Contractor's earnings. 

660. Travel and livery. 
661. 

662. 
663. 
664. 

665. Prorated charges — construction and maintenance 

(camp). 

666. Prorated charges — construction and maintenance 

(corral). 

667. Prorated charges — construction and maintenance 

(mess). 

668. Prorated charges — industrial railway operation. 

669. Prorated charges — general. 

670. Depreciation on equipment. 

Paving (Asphaltic), 671 to 710 

This feature includes the same asphaltic com- 
binations as mentioned in the one preceding. All 
charges incident to the laying of surfacing ma- 
terials, from the time the manufactured product 

07 



is dumped into the conveyance at the plant, should 
be made against this feature. Such charges as the 
preparation of the grade ; of scarifying old macad- 
am, and such expense as to prepare the grade for 
the receiving of the permanent hard surfacing 
material, should be made against "Construction 
Sub-Grade" feature. This is considered a 
"Permanent Construction" feature and receives 
its portion of the prorated administrative charges. 

671. Salaries — engineering. 

672. Salaries — drafting. 

673. Salaries — accounting and timekeeping. 

674. Salaries — inspector. 

675. Labor — superintendence. 

676. Labor — scarifying old macadam. 

677. Labor — grading. 

678. Labor — coarse base rock unloading, hauling, spread- 

ing, etc. 

679. Labor — rolling base rock. 

680. Labor — side drainage. 

681. Labor — setting form boards. 

682. Labor — hauling and spreading asphaltic concrete. 

683. Labor — hauling and spreading bitumen. 

684. Labor — hauling water and sprinkling. 

685. Labor — rolling binder and top course. 

686. Laboratory expense. 
687. 

688. 

689. Materials and supplies — fuel and lubricating oils for 

rollers. 

690. Materials and supplies — small hardware. 

691. Materials and supplies — cement. 

692. Materials and supplies — repairs to equipment. 

693. Materials and supplies — 

694. Purchase of equipment. 

695. Rental of equipment. 

696. Travel and livery. 

697. Advertising. 

698. Legal expense. 

699. Telephone and telegraph. 

700. Workmen's Compensation Act. 

701. Contractor's earnings. 
702. 

703. 
704. 

705. Prorated charges — construction and maintenance 
(camp) . 

68 



706. Prorated charges — construction and maintenance 

(corral). 

707. Prorated charges — construction and maintenance 

(mess). 

708. Prorated charges — industrial railway operation. 

709. Prorated charges — general. 

710. Depreciation on equipment. 

Culverts and Drains, 711 to 765 

To secure intelligent costs on this feature, each 
drain and culvert should be so designated that its 
cost can be ascertained separately. The most 
simple method by which this result can be accom- 
plished is a plain numerical system of numbering. 

Starting from the lowest station number, the 
first culvert on the profile should be given No. 1 
and follow in order as they appear on the profile. 
Should it later occur that some culverts on the 
profile were not constructed or their location 
changed, this can be remedied in the final index, 
which should be a concise description of the cul- 
vert, giving station number, size, length and kind 
of material used, that there may be no doubt as to 
its identity. Also the date started and finished. 
This number should follow the prefix symbol, 
thus : 9a-3 (3 is the culvert number) , 16-inch vit- 
rified pipe drain, 32 feet long, Station 23-50. (The 
symbol 9a locates the culvert as to project.) In 
making charges against this culvert, if it be on an 
invoice, the following combination would be used : 
9a-3-737 (for material and supplies, 18-inch pipe 
or tile). The index would state whether pipe or 
tile, and the kind, so that with this notation the 
history of the culvert would be complete. If it 
happened to be a labor charge the 9a prefix would 
appear on the timebook cover so that the item op- 

69 



posite the man's name showing segregation of 
time would be thus: 3-714 (for labor — superin- 
tendence, on culvert No. 3). All charges incident 
to the construction of culverts and drains should 
be made against this, which is considered a "Per- 
manent Construction" feature and carries its pro- 
rated apportionment of administrative charges. 

711. Salaries — engineering. 

712. Salaries — drafting. 

713. Salaries — accounting and timekeeping. 

714. Labor — superintendence. 

715. Labor — concrete forms. 

716. Labor — hauling and placing reinforcing steel. 

717. Labor — mixing and placing concrete. 

718. Labor — excavation. 

719. Labor — placing concrete pipe and tile. 

720. Labor — placing metal culvert. 

721. Labor — finishing. 

722. Labor — repairs to equipment. 

723. Labor — freighting and handling materials. 

724. Labor — backfilling. 
725. 

726. 

727. Labor— 

728. Labor, materials and supplies — screening gravel. 

729. Labor, materials and supplies — rock headwalls. 

730. Labor, materials and supplies — concrete head walls. 

731. Materials and supplies — lumber. 

732. Materials and supplies — 4-inch pipe or tile. 

733. Materials and supplies — 6-inch pipe or tile. 

734. Materials and supplies — 8-inch pipe or tile. 

735. Materials and supplies — 10-inch pipe or tile. 

736. Materials and supplies — 12-inch pipe or tile. 

737. Materials and supplies — 18-inch pipe or tile. 

738. Materials and supplies — 24-inch pipe or tile. 

739. Materials and supplies — 30-inch pipe or tile. 

740. Materials and supplies — 36-inch pipe or tile. 

741. Materials and supplies — cement and sacks. 

742. Materials and supplies — hardware. 

743. Materials and supplies — hydrated lime. 

744. Materials and supplies — repairs to equipment. 

745. Materials and supplies — sand. 

746. Materials and supplies — gravel. 

747. Materials and supplies — explosives. 

748. Materials and supplies — reinforcing steel. 

749. Materials and supplies — 
750. 

70 



751. Freight and express. 

752. Purchase of equipment. 

753. Rental of equipment. 

754. Travel and livery. 

755. Advertising. 

756. Legal expense. 

757. Telephone and telegraph. 

758. Workmen's Compensation Act. 

759. Contractor's earnings. 

760. Prorated charges — construction and maintenance 

(camp). 

761. Prorated charges — construction and maintenance 

(corral). 

762. Prorated charges — construction and maintenance 

(mess). 

763. Prorated charges — industrial railway operation. 

764. Prorated charges — general. 

765. Depreciation on equipment. 

Special Numbers for Construction of 
Reinforced Concrete Box Culvert, 766 to 805 

The charges for construction of concrete box, or 
other small culverts and drains would ordinarily be 
carried under the preceding feature. However 
the items in this feature have been assembled to 
cover this special construction and as they are 
listed in a manner different from the regular cul- 
vert and drain feature, are included in the account 
number book. This is considered a "Permanent 
Construction" feature and should bear its share of 
the prorated administrative charges. 

By use of a prefix number, this standard fea- 
ture is used on all work under similar conditions. 
Each culvert is numbered and indexed, giving 
location, size, date of commencement of construc- 
tion, and such additional data necessary to pos- 
itively and permanently identify it. The number 
used to index the culvert answers the purpose of 
a "prefix" number and is used with each item of 
the feature. To illustrate, thus : 

71 



28-775 inserted on an invoice indicates that the 
charge is for cement and assessed against culvert 
28. A summary of charges against 28-775 will 
indicate at any time the aggregate cost of cement 
on this project. 

If the cost of the cement at the job is desired 
(which would include hauling and handling 
charges), add all charges against numbers 28-775 
and 28-776. This process may be followed to se- 
cure any combination of costs desired so that data 
may be given in detail or in aggregate according 
to the desires of the administrative and operation 
officials. 

The segregation of the timebook entries desig- 
nate labor charges and all labor and service 
charges should pass through the timebook. The 
total of invoice and other charges indicate ma- 
terial cost and miscellaneous expense against the 
project, by items as listed in feature numbers. 

766. Engineering. 

767. Superintendence. 

768. Excavation. 

769. Sand and gravel. 

770. Screening sand and gravel. 

771. Sacking sand and gravel (including sacks) . 

772. Hauling sand and gravel. 

773. Water. 

774. Hauling water. 

775. Cement. 

776. Hauling cement. 

777. Reinforcing steel. 

778. Hauling reinforcing steel. 

779. Placing reinforcing steel. 

780. Form material. 

781. Hauling form material. 

782. Constructing forms. 

783. Stripping forms. 

784. Mixing and placing concrete. 

785. Explosives. 

786. Repairs to equipment. 

787. Purchase of equipment. 

72 



788. Travel and livery. 

789. Advertising. 

790. Legal expense. 

791. Telephone and telegraph. 

792. Workmen's Compensation Act. 

793. Contractor's earnings. 

794. Freight and express. 
795. 

796. 
797. 
798. 
799. 

800. Prorated charges — construction and maintenance 

(camp). 

801. Prorated charges — construction and maintenance 

(corral) . 

802. Prorated charges — construction and maintenance 

(mess). 

803. Prorated charges — industrial railway operation. 

804. Prorated charges — general. 

805. Depreciation on equipment. 

(Note. — The item "Hauling" is given special prominence 
in this feature. The work for which this feature was pre- 
pared was in the mountainous districts away from rail- 
road transportation and the hauling was by team from 
the valley up to a high altitude. One of the heavy expenses 
and a big factor in costs was that of transportation of 
materials. Therefore this segregation, as much additional 
work was contemplated under similar conditions, and a 
better basis for estimating costs on future work desired) . 

Bridge- Steel, Concrete or Frame, 806 to 885 

Structures for which these feature numbers are 
used should be numbered in the manner suggested 
under "Bridge Prefix Numbers " page 35. The 

items listed under this feature are expected 
to cover any form or type of bridge con- 
struction, large or small. The number used 
to designate the structure should be carried in 
an index stating the type of bridge, its loca- 
tion, length, date of contract, date of starting 
work, date of completion, cost and all other de- 
tailed information pertinent to its identity. This 
is considered a "Permanent Construction" feature 

73 



and should receive its share of prorated adminis- 
trative charges. 

806. Salaries — engineering. 

807. Salaries — drafting. 

808. Salaries — detailing. 

809. Salaries — inspection. 

810. Salaries — accounting and timekeeping. 

811. Salaries — 

812. Labor — superintendence. 

813. Labor — temporary building. 

814. Labor — assembling equipment. 

815. Labor — erecting plant. 

816. Labor — test pits, borings, soundings. 

817. Labor — testing materials. 

818. Labor — excavation (wet). 

819. Labor — excavation (dry). 

820. Labor — erecting falsework. 

821. Labor — erecting concrete forms. 

822. Labor — taking down concrete forms. 

823. Labor — placing reinforcing steel. 

824. Labor — mixing and pouring concrete. 

825. Labor — taking down falsework. 

826. Labor — sheeting. 

827. Labor — placing concrete pipe or tile. 

828. Labor — placing metal culvert. 

829. Labor — rubble masonry and other retaining walls. 

830. Labor — applying waterproofing. 

831. Labor — pumping. 

832. Labor — handling materials and supplies. 

833. Labor — repairs to equipment. 

834. Labor — hand rail. 

835. Labor — carpenter. 

836. Labor — finishing concrete. 

837. Labor — erecting steel. 

838. Labor — riveting steel (field). 

839. Labor — painting. 

840. Labor — framing timbers and placing. 

841. Labor — driving piles. 

842. Labor, materials and supplies — floor. 

843. Labor, materials and supplies — taking down old 

bridge. 

844. Labor, materials and supplies — moving and storing 

equipment. 

845. Backfill to bridges. 
846. 

847. Materials and supplies — lumber. 

848. Materials and supplies — hardware. 

849. Materials and supplies — repairs to equipment. 

850. Materials and supplies — testing materials. 

851. Materials and supplies — cement and sacks. 

74 



852. 
853. 
854. 
855. 
856. 
857. 
858. 
859. 
860. 
861. 
862. 
863. 
864. 
865. 
866. 
867. 

868. 
869. 
870. 
871. 
872. 
873. 
874. 
875. 
876. 
877. 
878. 
879. 
880. 

881. 

882. 

883. 
884. 
885. 



Materials and supplies- 



Materials and suppl 
Materials and suppl 
Materials and suppl 
Materials and suppl 
Materials and suppl 
Materials and suppl 
Materials and suppl 
Materials and suppl 



Materials and suppl 
Materials and suppl 



-reinforcing steel. 

ies — sheeting. 

ies — concrete pipe and tile. 

ies — metal culvert. 

ies — sand, gravel and stone. 

ies — waterproofing. 

lies — hand rail. 

ies — paints, oils, brashes, etc. 

lies — 
Materials and supplies — fuel, light and water. 
Materials and supplies — piling. 
Materials and supplies — hydrated lime. 
Materials and supplies — temporary building. 

"ies — pumping and pipe line. 

ies — expansion plates. 
Materials and supplies — test pits, borings, soundings, 

etc. 
Travel and livery. 
Legal expense. 
Purchase of equipment. 
Rental of equipment. 
Telephone and telegraph. 
Freight and express. 
Advertising. 

Workmen's Compensation Act. 

Contractor's earnings. 

Rental of site for plant and materials. 

Prorated charges — construction and maintenance 

(camp). 
Prorated charges — construction and maintenance 

(corral) . 
Prorated charges — construction and maintenance 

(mess). 
Prorated charges — industrial railway operation. 
Prorated charges — general. 
Depreciation on equipment. 



BINDERS AND FORMS FOR 
FIELD AND OFFICE 



Books and' Forms, and Their Use 

In the operation of this system of accounting 
there should be as few books and forms of record 
as possible to accomplish results in the most simple 
and effective manner with a view to making 
permanent as many of the original records as 
practicable. On new work there should be some 
central control to censor all forms suggested for 
adoption and to stop the tendency to turn out 
forms suitable for one portion of a project only, 
when by a slight change the form could be made 
just as valuable for that particular work and also 
to cover numerous other similar features. 

A standard size, or several standard sizes for 
forms will be found very effective in most offices. 
That is, when a new form is worked out, select 
a size that will fit one of the binders in use, or 
one of the filing card cases. More than one 
standard size may be required. Making forms into 
odd sizes is a cause of trouble from nearly every 
angle. A little thought on this subject will make 
it possible, nearly always, to either enlarge the 
prospective form a trifle, or make it smaller to fit 
some size already in use. One advantage of having 
standards is that in the field where many differ- 
ent forms are used, a very few of each, possibly 
one or two binders and one card index box will 
take care of the needs of a fairly large force. In 
the field when moving is frequent, every pound of 



76 



extra luggage is a handicap. There are, however, 
many other advantages in having standard sized 
forms. 

Try Temporary Form Before Definite Adoption 

When a new form is contemplated, a good pre- 
caution is to try out a temporary pencil ruled 
sheet for a short time to see how it works, filling 
it in exactly as the requirements of the work make 
necessary. A short trial use of the average form 
will frequently suggest changes and additions. A 
form made in this manner is likely to be of the 
most practical nature. 

Frequently long study and some expense is put 
on a form which, when actually used, does not 
answer the purpose at all. A form, if it is worth 
having printed and put into use, should be of suf- 
ficient value to warrant study by a man of prac- 
tical experience to insure its meeting the purpose 
desired. A good form properly censored is a big 
labor saver on construction work, but like all 
things, good or bad, form-making should not be 
overdone. When the principle of the account num- 
ber system is thoroughly understood it will be 
found that numerous forms considered indis- 
pensible on construction work can be very nicely 
eliminated and the same, or possibly more valu- 
able information gained through a summary of 
account numbers on a blank sheet. 



77 



TIME BOOK SHEETS 



Plates Nos. 1, 2 and 3 

(Explanation. — Key to the numbers shown on 
plates above referred to. The plate was originally 
used in the former edition of Costkeeping and 
Construction Accounting. In this edition the num- 
bers have been revised somewhat to make them 
more compact and of a more general nature. The 
numbers used on plate 1 are for the following 
items. See page 80) . 

Feature — "Construction and Operation of 

Blacksmith Shop" 

291. Labor, materials and supplies — construction of build- 
ing and setting up equipment. 
286. Labor — blacksmith. 



Feature — "Bight of Way" 

372. Labor — clearing land (by hand) 
376. Labor — fencing. 
378. Labor — fighting fire. 



Feature^ — "Construction of Sub-grade, and Spreading and 
Boiling Crushed Bock and Gravel" 

417. Labor — plowing. 

418. Labor — excavation (hand). 
422. Labor — ditching and draining. 
425. Labor — disposing of slides. 

438. Labor, materials and supplies — road grader work. 



These items will be found under the respective 
features in the account number book section, but 
under different numbers. 

Plates 1, 2 and 3 on the following pages show 
portions of timebook after having been completed 

78 



and ready for payment of services. Plates 1 and 2 
show the front and back of the timebook sheet. 
These sheets, when fastened together, form a con- 
tinuous book, time of employe to the 24th of the 
month appearing on the first sheet and the bal- 
ance of his time record on the back of sheet No. 2, 
and in this manner running through the book so 
that when the timebook is opened a man's complete 
record of time follows across the two pages as 
though it were one long sheet. 

Plate No. 1 

This shows badge number assigned to man, 
name and occupation of employe, account num- 
bers under which he is working, the time to 24th 
of month ; also it shows the sheet number of time- 
book, month, year and the symbol under which the 
work covered by this timebook is done. 

Badge Number 

When the mess is operated on work of some 
magnitude and changes in employes are frequent, 
it is sometimes considered of advantage to identify 
each man by a badge, which is given when he is 
signed up for employment and the number of 
which is entered opposite his name in the time- 
book. The men are also given notice that no one 
may enter the dining room without this badge, and 
that each man will be charged with every meal 
served while the badge is in his possession. If he 
is to miss several meals at the mess and desires 
credit, he must report to the timekeeper and leave 
his badge before the first meal (which he expects 
to miss) is served. The meals served while that 
badge is in the possession of the timekeeper he 

79 



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X 
X 

X 
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Plate 1. — Full size, 8x5 x /z inches. Time book sheet. See 
Plate 2 for reverse side. When leaves are bound in cover 
and book opened a continuous record of each man's time is 
shown. For key numbers, see note under "Timebook 
Sheets," page 78. 



80 



will not be charged with. The result in a great 
measure is the elimination of annoying arguments 
as to whether or not a man has due him credits for 
meals missed, when without the badge there might 
be considerable doubt as to whom meals were 
served. If these badges are lost a charge of $1.00 
is made against the employe. 

Plate 1 gives a graphic example of the segrega- 
tion of time. It will be found that these three men 
were employed on various features, and the plate 
shows how easily, by the use of the numbers, the 
segregations are made, with the account number 
book as a key. 

Plate No. 2 

This is a continuation of Plate No. 1 and shows 
the manner of inserting rates and charges. It will 
be noted that James L. Roberts received $2.00 per 
day for all his work except that time spent fight- 
ing fire, which is paid him at the rate of $2.40 per 
day. The last item shows the method of handling 
monthly rates and at the bottom of each sheet, at 
the close of the month, is carried the totals of col- 
umns. In the "Amount Earned" column is carried 
the segregation of charges to each account num- 
ber. In the "Total Earned" column is a total of 
each man's earnings for the period employed. 
"Meal Tickets" include charges for meals served 
at the camp mess. "Orders on Store" covers all 
purchases from camp commissary and mess sup- 
plies. "Rent and Hospital." It is customary on 
many construction jobs to contract for the serv- 
ices of a physician and hospital facilities. A small 
monthly charge is made against each employe, 

81 



ranging from 50 cents to $1.00. "Total Deduc- 
tion" column is self-explanatory, being the total 
of the three previous columns, "Amount Due" be- 
ing the difference between "Amount Earned" and 
"Total Deductions." 



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Plate 2. — Full size, 8x5% inches. Reverse side of form 
No. 1. Time book sheet. 

82 



Plate No. 3 

At the close of the month each item should be 
completed and the amount due extended, columns 
of the timebook sheets totaled and a recapitulation 




Plate 3.— Full size, 8x5 V 2 inches. Timebook sheet, show- 
ing recapitulation of timebook by pages and summary of 
account numbers. This is one of back sheets and bound 
in timebook at close of month. 



made by pages, as shown on this plate. A summary 
of account numbers should also be taken from the 
items of the timebook, the totals of each account 
number to which charges have been made during 
the month collected and the summary of the totals 
charged against each number listed, as shown on 
Plate 3. This total of account numbers and the 
total of the "Total Earned" (column 1) of the re- 
capitulation of the timebook by pages should be 
the same. If the extensions of time worked are 
made correctly this is a pretty good check as to 
the correctness of the balance of the timebook. 
After this summary is made the one in charge of 
that particular unit which the timebook covers 
should certify to the correctness of items and 
segregations. 

Permanent Record is Secured 

With the account number book as a key, this 
makes a record of each employe's services for all 
time. If the general office and camps are located 
a considerable distance apart, this record enables 
the general office employes to check up any man's 
time from day to day, and determine exactly what 
he has been doing. This is of advantage occasion- 
ally when disputes arise as to time worked, when 
men appear at paymaster's window with time- 
check. The employe's memory may be quickened 
by a statement by days as to just what he was 
doing and many times he remembers that just 
after a certain job "it rained and the crew laid off 
half a day," or "he cut his foot on that job and 
was off two and one-half days," etc., items which 
he had overlooked when making claims for addi- 

84 



tional time. These are all small matters, but on 
construction work the lack of adequate and def- 
inite information, especially when the main office 
and the job are separated, means the spending of 
considerable time looking for information, at a 
season of the year when the element of time is 
of the greatest value. 

Plate No. 4. Form No. 2. Timecheck Form 

Timechecks are issued by the timekeeper to the 
employes when services are terminated. When a 
timecheck is issued the time in the timebook 
should be closed in the same manner as would be 
the case ordinarily at the end of the month, and a 
notation entered "Timecheck Issued," or, if no 
rubber stamp is provided, the notation in large 
colored pencil "T. C." is sufficient. On receiving 
payment on timecheck the employe endorses the 
back of the timecheck as a means of identification. 

The account numbers designating the work 
done by the employe and the amounts charged to 
each should be listed on the back of the timecheck, 
to enable the general office to make proper entry. 
(This procedure is not necessary, however, if the 
general records are kept at the same office in 
which the timebook is kept, as the bookkeepers can 
then secure necessary information from the time- 
book itself) . 

When the timebook is closed and sent to the pay- 
master for payment, he should carefully check 
back the payments made on account of timechecks 
issued, with the accounts in the timebook marked 
"T. C." to see that they are identical with the 
amounts paid on timechecks. After a timecheck is 

85 



issued in the field that account in timebook should 
not be changed by the timekeeper, even though an 
error has occurred, without the sanction of the 
paymaster and proper adjustment in all accounts 
affected. It is important that the paymaster on 
each payday compares the grand total of the time- 
book against a total of checks issued against time- 
checks and timebook entries. These, of course, 
should balance before regular monthly checks are 
passed out. 

Plate No. 5. Cost Ledger Sheet. Method of Assembling 
Charges to Account Xumbers 

A "Classification Book" is opened for the as- 
sembling of all charges monthly. The book is made 
up of loose sheets standard size, 81/2x10% inches 
and consists of several ruled columns on both sides 
of sheets. Each feature is given a sheet (both 
sides). For instance "General Field" Nos. 151 
to 195 is entered and both sides reserved for 
entries to this feature. All charges against 
items Nos. 151 to 195 are assembled on this 
sheet; each individual item, carrying all 
charges against it from whatsoever source 
they may come, either timebook, invoice, store- 
house, or other sources. The charges on the sum- 
mary sheets are totaled by items and a grand total 
of items and features taken. When the classifica- 
tion book has been balanced with the totals of all 
records from which the summary is made, it 
should be carefully bound, labeled and filed for 
future reference as one of the permanent records. 

On many projects, it may happen that the rec- 
ord of segregations in the "Classification Book" 
is sufficient for all purposes. The smaller units 

87 



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Plate 5. — Full size AV2 inches by 1V± inches. Cost 
ledger sheet, condensed form. Monthly costs are as- 
sembled on this sheet by features. 



have answered their purpose in the field and from 
the close of the month on the only segregation 
desired is by features, which are posted in one 
lump sum feature by feature in the "Cost Ledger 
Book" and carried in this manner. 

On other work it may be considered advisable to 
carry these charges by feature items until the 
close of the work. Plate No. 5 shown illustrates 
the latter treatment, that is, the carrying of all 
charges on the cost ledger by items. A reason for 
carrying segregation by items in the general office 
instead of by features only, is that on some work 
it seems desirable to send monthly cost figures to 
the Division Engineers in the field which, from 
the general office viewpoint, are final and correct, 
and include items charged against his work of 
which he may have no record. Or, in the rush of 
his work and lack of good office equipment, such 
as adding machines, etc., he may have made some 
error in listing and not have a true record of his 
cost items. 

Cost Items May Be Blue Printed and Sent Field Men 

Plate No. 5 shows a sample cost ledger sheet, 
pocket size on thin tough paper. Entries 
are made in India ink, the record may be blue 
printed and all sheets affecting the various di- 
visions sent to the Division Engineers immedi- 
ately on closing the books each month. It is pre- 
sumed that he has kept a record day by day during 
the month from the data which has passed through 
his hands. Practically everything should go 
through his hands for this purpose, except certain 
overhead charges which may be assessed against 

89 



his work and a few other charges which are of 
such nature that they can only be settled intelli- 
gently by the general office. The sending of a true 
copy of the final and completed cost ledger sheet 
to him monthly gives him a definite knowledge of 
just what is charged against him in the general 
office and of his standing as to costs. By being 
blue printed from the permanent record, time is 
saved that re-copying would entail, and there is 
also a certainty that the figures sent to the field 
correspond identically with the office records. If 
the field engineer believes his work is carrying 
charges which should not be assessed against it he 
has opportunity monthly to take the matter up 
with the proper authority and have the merit of 
the charges settled. He has an opportunity to 
protect himself against errors in the general 
office which may be to his disadvantage. At the 
same time the general office is in position to ex- 
plain any apparent errors or overcharges while 
the entire matter is fresh in the minds of all and 
perhaps produce data which bears the approval of 
the field engineer and which has slipped his mind, 
temporarily. This process puts both field and of- 
fice on their mettle, and it is believed creates a 
better feeling between them. The feeling by some 
field men that the office can "make or break" 
their good records is eliminated. 

Field and Office Are Dependent on Each Other 

The general office works with the knowledge 
that if a "bonehead blunder" is pulled in compiling 
cost charges, the engineer will undoubtedly catch 
it. This has a healthy tendency towards more care 

90 



in assembling charges against features than might 
otherwise be the case. A congenial relationship 
between the office and field forces is of the utmost 
importance if the maximum of efficiency is to be 
secured. Unhappily this relationship does not al- 
ways exist and it is believed that the cause is 
largely because of a lack of understanding of each 
other's responsibilities. 

Engineer Must Have Definite Cost Items 

Sometimes the general office assumes the atti- 
tude that it is none of the field man's business as 
to the manner in which the office records are 
assembled. This is a very sad mistake. The man- 
ner in which charges against his work are 
assembled is absolutely vital to the field man if he 
is to maintain a pride in his work and keep the 
enthusiasm of his men at such a state as to pro- 
duce the maximum of results. The field men 
should be encouraged by a true unbiased periodical 
statement of costs and through this medium 
assisted in reducing them by increasing the out- 
put. Every human being must have some incentive 
to encourage the best that is in him and to the 
average engineer or construction man this 
incentive is very largely a true record of just what 
he is accomplishing. This gives him something 
tangible to "better" and by which to guage his 
work day by day. 

These monthly sheets may be summarized and 
assembled each quarter (three months) or more 
frequently if desired. The prefix is the con- 
trolling factor on each feature as that positively 
identifies the work and location of it. 

91 



The cost ledger items are of course supported by 
data furnished from the engineering report of the 
work, showing yardage, and other quantities com- 
mon to construction work. The entries in the 
classification book may be made continuously 
through the month as invoices are rendered. It 
is a good custom for the invoices to be immediately 
sent to the field for approval, where the approval 
is handled in that manner (if no regular purchas- 
ing department is maintained) and the field man 
check off the goods from his receipt form, insert 
the proper charge and return immediately to the 
general office. This allows the general office to 
spread its work over an entire month, instead of 
having a rush at the close of the month which 
tends towards errors and poor work. No work 
should be left until the close of the month except 
that which is absolutely necessary and cannot be 
handled at other periods. The competent office 
manager will arrange his work so that the bulk 
of it is taken care of day by day through the 
month. 

(Note. — See further reference to this form following 
description and use of form on Plate No. 6, page 94). 

Plate No. 6. Large Size. Cost Ledger Sheet 

While in most cases the small size of cost ledger 
sheet is preferable, there is a place for the larger 
form, as shown by Plate No. 6, and on some work 
it may have advantages over the smaller form. 
This would apply on the larger projects, where a 
general office with a full quota of assistants is 
maintained and condensing of records is not con- 
sidered important. The plate shows the first num- 
bers of "Camp Construction" feature and the 

92 



final totals of the sheet. This sheet is followed in 
the cost ledger book by an insert printed on both 
sides, with space for entries for six months, and 
ruled in the same manner as Plate No. 6, except 
that the space for classification and account num- 
ber is left off. The classification and account 
number entered on Plate No. 6 answers for all 
insert sheets which are bound into the book for 
as many months or years as the work may con- 
tinue. 

Plates Nos. 5 and 6. Relative Merits of 
Cost Ledger Sheets 

The small sheet (Plate No. 5) is in use by the 
Oregon State Highway Department and for the 
nature of the work in this state is considered to 
have many advantages over the larger form. A 
summary of costs by features are sent monthly to 
each of the men in charge of sections of the work. 
The original copy is made on a tough thin paper 
and blue prints made from it for field use. This 
makes a small, compact record which is considered 
of importance. On public work the chief account- 
ant is occasionally called upon to attend meetings 
of interested citizens who have a habit of asking 
questions on every subject imaginable connected 
with the work, and on financial matters they 
expect, and should be given, an immediate answer. 
To satisfactorily do this it is necessary to have 
practically a complete set of the cost ledger fig- 
ures, and this is only possible and practicable by 
having them on a condensed form from which blue 
prints can be made, otherwise it would not be 
advisable to take the only set of books from the 
general office. Another advantage in the use of 

94 



the smaller form is the small expense of printing 
and the lack of waste in its use. 

The cost ledger sheet shown on Plate 6 is carried 
on heavier paper and it is not intended to make 
blue print copies of this record, although there is 
no reason why the form could not be made up on 
a thin tough paper and blue printed, the same as 
Form No. 5. This requires a little more labor in 
its preparation and is suitable for larger projects. 

Plate No. 7 

This plate shows form No. 7, "Register of 
Checks" which is simply what the title indicates — 
a register of all checks written. A voucher is 
prepared covering each account, or a number of 
invoices to one firm, and after approval of the 
account by the proper authority, a check is writ- 
ten. As all segregation is on the voucher, there is 
no necessity of a segregation on the check reg- 
ister. It is checked against the total of vouchers 
issued and paid. 

Form No. 12, "Voucher Register," is also shown 
on this plate. A voucher form which is of heavy 
paper and on which all invoices to be paid to one 
firm for a given period are attached, is prepared 
and approved, by the proper authority, for pay- 
ment. A space is provided on the back of the 
voucher form for the number of check, the date, 
bank and fund on which drawn, amount of check, 
and a summary of charges by account numbers to 
which the items on the voucher should be charged. 
The vouchers are numbered consecutively and then 
listed on "Voucher Register" together with the 
number of the "warrant" or "check" by which 

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Plate 7. — Full size of each form 7 and 12, 8V2 inches 
by 10% inches. All checks are listed as issued, on check 
register, and all vouchers are listed on voucher register. 
Total of voucher register for each month must check with 
totals of cost ledger by features for month. 



payment is made and the symbol number of job 
to which charge is made. Only the aggregate 
charge to the job as a whole is made on voucher 
register, the units are shown on the voucher itself 
and the larger amount as shown on the voucher 
register is used as a quick check against the jobs 
in the closing of the monthly accounts, to see that 
the summary of all the smaller items correspond 
with the larger totals. This in a measure is used 
as a check to catch and correct errors in as- 
sembling items which may have been listed under 
improper prefix numbers or jobs, and gives the 
chief accountant a guide as to the correctness of 
the numerous items assembled by the costman. 
The check register, it will be noted, has a column 
for "Voucher Number." This gives a good cross 
reference to each account paid. Both checks and 
vouchers are filed consecutively in separate files 
— no attempt is made to file the voucher and 
check, by which the account is paid, together. It 
is believed that separate files are more satisfac- 
tory. The totals of the cost ledger, and of the 
voucher register should agree. (If a storehouse 
is maintained — then requisition charges should be 
considered also. See statement under storehouse). 
A total of the check register, and of "vouchers 
paid" should agree. It is quite probable that 
monthly cost figures will be made up of both paid 
and unpaid vouchers. (Obligations created during 
a certain month, which may not necessarily be 
paid during that period, but which have a bearing 
on the cost record for that month would be used, 
as in assembling costs no attention is paid to the 
payment of accounts. Labor, material and supplies 

97 



USED is the only basis on which costs are 
assembled). 

On the payroll accounts, where several funds 
are used, it has been found of considerable assist- 
ance to use a different bank for the depositing of 
the various funds, and a different colored check 
for each fund — each color of check numbered con- 
secutively from No. 1 and a section of the check 
register reserved for each different color of check. 
This enables the accountants to keep every fund 
absolutely separate and is considered "fool proof" 
as nearly as such a thing may be accomplished. 

The checks written on the regular invoice ac- 
counts prepared on vouchers may be handled in 
this same manner if conditions are favorable. 

Plate No. 8. Form No. 6. Personal Ledger Card 

This card is found more convenient in handling 
personal accounts than a bound or loose leaf 
ledger. It is arranged alphabetically in a box file 
or the drawer of a desk. At certain periods, 
usually quarterly, those firms with whom there 
has been no dealing for the quarter and with 
whom, so far as is known, there will be no more 
dealing, are placed in a "dead file." This leaves a 
"working file," convenient to handle, and makes 
a very compact, easily kept record, and if carefully 
kept prevents duplication of payment of accounts. 

This form is used on both state and county ac- 
counts when they are both handled in the one of- 
fice. Information under "Road or Bridge" makes 
available a quick summary of charges against the 
two departments with little work. "Memo of 
claim," calls for an insertion such as "Hardware," 

98 



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Plate 8. — Full size, 4x6 inches. On this card is kept all 
personal ledger accounts, one card to each account, which 
is filed in a drawer of the voucher clerk's desk for con- 
venient use. 



09 



"Equipment," Mess House Supplies," "Travel 
Expense," etc., etc. "Date of first charge." Here 
is entered date of first charge appearing on an 
invoice on which is listed a number of charges 
running over a period of time. "Date of Last 
Charge." Here is listed the last charge on the 
invoice referred to above. Should a subsequent 
invoice be received on which there appears charges 
between the dates shown on a previous invoice as 
listed on the "Personal Ledger Card" then the 
voucher clerk looks up his previous voucher, com- 
pares the items with those on the subsequent 
claim and in this manner detects duplications and 
prevents a second payment of the account. This 
form, of course, may be modified to fit the special 
needs of any project and may be made smaller if 
some of the information shown here is not con- 
sidered of value, or enlarged if other data is con- 
sidered pertinent to the work. The intent of the 
card, as the name implies is chiefly to cover two 
things, give a condensed record of dealing with 
a certain firm, and to prevent duplication of pay- 
ments of accounts. 

Plate No. 9. Form No. 9. Messhouse Report 

The items on this form are self-explanatory. It 
is intended to show the status of messhouse oper- 
ations from month to month as well as to date. 

On the mess house report there is contained 
sufficient segregation to make it possible to quick- 
ly detect the difficulty where costs are at variance 
with previous records. The items are taken from 
the numbers shown under "Messhouse Construc- 
tion and Operation" feature, Nos. 225 to 245 and 
assembled in the manner indicated by headings on 

100 



form No. 9. Plate No. 9. The difference between 
an inventory at the close of the current month 
and one taken the previous month is necessary to 
secure the true cost of the mess house operation. 



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Plate 9.— Full size, 10 3 /4x8y 2 inches. Report of com- 
parative and average costs of mess house by months. 



101 



Low Costs and Best Meals at Same Camp 

Usually the low costs, and the "good meals" are 
found at the same camp, which indicate that high 
costs are most frequently due to a lack of knowl- 
edge of the fine points in cooking, rather than to 
any other cause, except that where a small crew is 
maintained labor costs may be excessive. How- 
ever, the above is seldom acknowledged as a "rea- 
son" by the cook. With him, like a good many 
human beings, if costs are excessive, it is always 
the "Purchasing Department's fault," "poor fuel," 
"stove is no good" or some other equally good ( ?) 
reason. It remains a very peculiar fact, however, 
that almost always the camp which has the lowest 
mess costs is the one to which the men flock when 
they want a first class meal ; which entirely shat- 
ters the theory that because the management de- 
sires and insists on reasonable costs in the mess 
house, it is necessarily trying to "starve" the men. 
A meal that is poor is expensive at any price, re- 
gardless as to its cost in dollars and cents and the 
management always pays high for poor and im- 
properly served food. Sometimes this "high cost" 
to the management is not apparent inasmuch as 
the mess statements show a profit. The cost is 
there nevertheless and it comes through the ineffi- 
ciency and lack of pep in the workman who feels 
that he is poorly fed and "soldiers" on the job. The 
mess operation sheet may show, theoretically, a 
profit, but the yardage costs of the superintendent 
tells the other side of the story and he stands the 
"loss" which is not indicated on the mess report. 



102 



A Steward's Pride 

A good steward in construction camps who has 
at heart the real interest of his employers will not 
take so much pride in the profit to be shown on 
his mess report, as he does in the reports he may 
hear of his mess, the satisfaction of the workmen 
with what he is serving them and the manner in 
which the food is cooked and served. This does 
not conflict with the statement made above that 
economy in operation should have close attention 
and a profit over what the men pay for their 
meals shown if possible, but the first and most 
important consideration at all times is the supply- 
ing of a good substantial, well cooked, sanitarily 
served meal, well balanced and in as pleasant and 
agreeable environments as possible. The manner 
in which a meal is served has an important bear- 
ing on its food value. 

Everyone Kicks on the Cook 

As is well known by those who have had experi- 
ence in the operation of camps, the mess house is 
nearly always the "buffer." It is always perfectly 
legitimate to complain about the cook when there 
is nothing else to make a louder noise about and 
many times this is not entirely justified, but very 
many times it is partially so and anyway, if the 
men feel that they have a complaint on account 
of their food this matter should have prompt and 
energetic attention by the management. It is a 
very difficult matter to explain to some cooks that 
economical operation of the mess house does not 
mean putting less on the table. That real man- 
agement of this department really means a little 
more headwork, the arranging of meals for a 

103 



period in advance in such a manner as to make 
the most advantageous use of the "left overs" 
from each meal and to continually change the bill 
of fare. That the dishes must be washed clean and 
thoroughly, rinsed, and that old chipped enameled 
ware should not be used. It always looks dirty 
after becoming chipped. The fact that the men 
are doing dirty work and are perhaps unclean 
themselves, does not mean that they do not appre- 
ciate cleanliness in the mess house, or that filth 
there goes unnoticed. 

A method of securing more efficency in camp 
cooks which has been condemned more or less 
because its operation was misunderstood, but 
which has worked in many places with the great- 
est of satisfaction, follows : 

A Sliding Scale for Cooks 

A sliding scale for salaries of cooks is adopted 
with a minimum guaranteed monthly rate. If the 
meals for the month cost exactly what the men 
pay for them, the minimum salary is all the cook 
receives. For each cent per meal under the price 
paid by the men, he receives a certain bonus ; the 
amount to be determined by the number of meals 
served. 

The All Important Factor 

It is understood first, however, that the wage 
paid in every instance depends altogether on the 
class of meals served, the cleanliness of the kitchen 
and dining room, and that the cook will not be 
tolerated if any serious complaint from the men 
is found to be based on facts. In other words, if 
meals are not satisfactory to the men, the cook 

104 



has to go and this is the most prominent and out- 
standing condition in offering him the induce- 
ment of a bonus. 

Charges Against Mess 

The charges assessed against the mess include 
the food stuffs furnished to which a certain per- 
centage is added over actual invoice price to cover 
handling and freight charges from railroad sta- 
tion to camp, the cooks' and helpers' wages, the 
initial cost of construction of mess house and 
dining room. (This charge spread over the period 
of months in which the mess house is estimated 
to be necessary and a monthly charge is arrived 
at) . All fuel, oil, etc., cost of all other expense 
pertinent to the operation of the mess house, such 
as root house construction, meat house, digging of 
wells, cesspools, etc., etc. 

Real Profit From Mess House Operation Does Not 
Necessarily Show on Mess Reports 

The real profit to be derived from mess house 
operation on any construction work comes from 
keeping the men in good humor and satisfied with 
their treatment. It is believed that a considerable 
portion of the credit for reasonable costs on con- 
struction is due and should be given to the man- 
agement of camp messes where it has in mind all 
the time the broad view of the matter which keeps 
it from unduly attempting to build itself up 
through the medium of a good figure on the profit 
side of mess reports, but is willing to look to the 
completed project as a whole for its credit and 
take its pleasure in the knowledge that it is in an 
unselfish manner, partly responsible for good 

105 



work done. If the mess has been properly handled 
the construction department will acknowledge the 
truth of this fact. 





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Plate 10. — Full size, S^xlO 3 ^ inches. Report of com- 
parative and unit costs of corrals by months. 



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Plate No. 10. Form No. 8. Corral Report 

The items on this form are self-explanatory 
and show the status of corral operations from 
month to month. 

Where team work is being done a corral report 
becomes as necessary as a mess house report to 
see that too much or too little forage is not being 
furnished the stock, and to learn the real cost of 
operation of corrals. Stock, like men, must be 
taken good care of if the maximum is to be expect- 
ed from them. A real stock man who has had ex- 
perience with teams and has been "brought up 
with them" usually will take better care of his 
stock than of himself. This type of man, however, 
is not always available. 

Plate No. 11. Form No. 10. General Ledger Sheet 

This plate shows a sample of the general ledger 
sheet covering allotments and expenditures in one 
section for the entire year. The form is small, but 
the space is ample and at all times gives a definite 
record of the status of funds under each section. 
At the close of each month a financial statement 
is made, listing accounts by feature and sections, 
which covers the ground very thoroughly: The 
original form is on thin paper copied in India ink 
from which blue prints may be made so that a 
duplicate set of records is available for field use, 
as well as an original and a working set on blue 
print paper in the office. 

Manner of Handling General Ledger Accounts Vary 

The manner of building up general ledger ac- 
counts will, of course, vary. The outline and form 
of items carried in the account number book, the 

107 



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STATE ENGINEER-HIGHWAY DEPARTMENT 



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Plate 11. — Full size, 4 1 /^x7 1 /4 inches. Charges against 
each section (or fund) are assembled on this sheet with 
necessary explanatory notes from minute book of State 
Highway Commission and cost ledger totals. 



nature and number of funds available and the 
general scope of the work to be handled have a 
very material bearing as to the number and nature 
of the general ledger accounts. The detail is large- 
ly carried in the cost ledger, equipment record 
book, storehouse record book and classification 
book. The page shown on Plate 11 illustrates the 
handling of a general ledger account, where the 
work is done by "allotments" by the State High- 
way Commission partially and where allotments 
are partially controlled and designated by law. In 
this case it was important to keep the general 
ledger records in this manner and have them tied 
to the "Record of Minutes of the State Highway 
Commission." The small form used as a "General 
Ledger Sheet" has given ample space for all in- 
formation necessary and proved very convenient 
to handle. As work was completed at certain 
periods (once a year seemed to be the best suited 
on this particular work) the accounts shown as 
completed in the general ledger book were taken 
out and firmly bound into a small book properly 
labeled and indexed and filed away with perma- 
nent records for future reference. But a very 
small space is required for these records and they 
are easily and quickly available at any time. 

The Handy Pocket Binder 

This sheet (general ledger sheet) and the cost 
ledger sheet, equipment record sheet, and small 
tool record sheet, are all of the same size and will 
fit binders in common use by engineers, such as 
"Morden's Loose Leaf Book" No. 6; "De Luxe 
Memo Books" Nos. 110 and 205, or any other 
pocket binder taking a 7%x4y 2 inch sheet. A con- 

109 



venient pocket size. The office binders are used 
with the one-inch rings. This form seems to 
answer the purpose as well on projects of several 
millions of dollars as it does on smaller ones. The 
only difference in treatment on the larger projects 
is that more sheets and proportionately more bind- 
ers may be necessary. The general ledger sheets 
may require two binders on the larger projects 
instead of the one which is sufficient for smaller 
projects, although frequently the only difference 
between the larger and smaller projects on con- 
struction work is that the amounts charged to 
the various features are larger and the general 
accounts carried are very much of the same 
nature, requiring practically no more book space 
than the smaller project with a varied number of 
features in operation. 

Plate No. 13. Form No. 13. "Equipment Record Sheet" 

Sheet printed on both sides — both sides shown 
on Plate 13. 

Equipment Charges 

The last item in each feature is "Depreciation 
on Equipment." There is also in each feature an 
item, "Purchase of Equipment." It is not intended 
that both of these items will be used on the same 
job. If the project is small, and on some of the 
larger work where only small equipment is neces- 
sary, it may be preferable to use the "Purchase of 
Equipment" item. If this method is followed, then 
at the close of the work, to arrive at a fair charge 
for its use during the period of construction, a 
physical inventory of equipment and appraisal of 
its value should be made and the item "Purchase 

no 



FORM 13 C-1-19-1H 



EQUIPMENT RECORD SHEET 



Voucher No.. 



Date. 



(Full description of equipment should be listed on this side of form. If heading do not 
fit certanTspecTal equipment, ignore them. If several parts comprise equipment list 
oartsstparate^y and then show total cost. On reverse side under column charge to 
should be Tsted the account number or feature to which depreciation is chargeable and 
length of time equipment has been used on that feature, as 

June, 1.98 No. 2844 June 1 to June 30th. 1919" 
Rented equipment is listed lin same manner aa that purchased-instead of depreciation 
charges on back, the rental charge is inserted. ) | 



DESCRIPTION OF EQUIPMENT 



Date of Purchase. 
From 



Price Complete. F. O. B. $. 



ADDREjS. 



Freight \ 

Express I charges From. 



.TO SALEM. ORE.. $. 



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Plate No. 13.— Full size, 4y 2 x7 1 / i inches. Each piece of 
equipment except "small tools" is listed on this form, one 
piece to each form. 



of Equipment" under the proper features credited 
with this amount. 

Use of Equipment Record Book 

The use of "Depreciation of Equipment" item 
is recommended on larger projects where a store- 
keeper and property clerk are employed. There is 
started an equipment record book in which is 
listed all equipment purchased for the work as it 
is delivered to the storekeeper or property clerk. 

Form No. 13, Plate No. 13 is self explanatory. 
As equipment is purchased it is listed on this 
form with sufficient descriptive matter to prop- 
erly and permanently identify it. Also sufficient 
segregation at time of entry to indicate at any 
time by reference to this record, the purchase (in- 
voice) price, freight paid on it — handling charges : 
whether or not extra parts were included with 
purchase price, and if so what, and their value. 
Date of receipt on project from whom purchased; 
whether new or second hand and any other in- 
formation that may be of importance in the 
future. The intention of this form is to make it 
so complete that when the invoice is paid and 
filed away, it will not be necessary to again look 
it up, but that there may be available in the equip- 
ment record book (which it is presumed will al- 
ways be within easy reach), all the information 
which might be supplied by a reference to the 
invoice. It is believed the arrangement of the 
present form will answer the purpose of listing 
most equipment; however, if occasionally it is 
found not suitable for certain pieces of equipment, 
rather than to attempt to fit the information to 

112 



the lines on this sheet, it is more important that 
this form should be ignored and insert the data 
necessary to give the information required and 
paste that sheet over this form. It is definite 
facts and information that is of value and not 
necessarily the following of exactly the wording 
of a certain form. A form can hardly be made 
to cover each and every individual case and if such 
is attempted, then the practical use of the form 
is usually very much limited if not made entirely 
useless. A form should be made to fit the major- 
ity of needs. Special items should be given special 
treatment rather than to attempt to make a form 
as elastic as some patent medicines are advertised 
to be. 

Assembling of Depreciation on Equipment Charges 

On the reverse side of this form it will be noted 
provision is made for the assembling of charges 
for "Depreciation." 

On the larger equipment a certain estimated 
period of usefulness should be made, and this 
should also be done on groups of the smaller equip- 
ment. On this estimated period of usefulness is 
based the charge per month against the various 
features for "Depreciation on Equipment." On 
completion of the work, or at various periods dur- 
ing construction, an actual inventory is made of 
the equipment; a fair valuation put upon it, and 
adjustment made between this amount and the 
amounts which have been arbitrarily charged 
from month to month as "Depreciation on Equip- 
ment." If it is found the charges made monthly 
were too large, then "Depreciation on Equipment" 

113 



should receive credit sufficient to take up the dif- 
ference ; if too little, a charge to cover the deficit. 

Small Tools 

Small tools should be carried in one division of 
the equipment record book. This includes such 
equipment as shovels, picks, axes, blacksmith tools, 
hammers, saws and all equipment which is easily 
lost or soon worn out. Items of the same type 
should be assembled in groups and treated in lots 
rather than single units. The period of useful- 
ness for this sort of equipment might be set at 
two to four months, depending on character of 
work. On gravel work a shovel might not last 
two weeks, while on other work small tools might 
last half a year. If the estimated period of use- 
fulness is four months and the equipment costs 
$240.00, depreciation should be charged to the 
proper item at $60.00 per month. At the close of 
four months, when that feature of the work is 
completed, theoretically this equipment is entirely 
worthless. If this is not the case and $60.00 worth 
of equipment is left, there should be entered on the 
final summary of costs a credit of $60.00 against 
the item "Depreciation on Equipment," which 
makes the adjustment complete and the new unit 
of the work to which this old equipment is trans- 
ferred takes the charge of $60.00, which is entered 
upon the equipment record book covering the new 
feature and an estimated period of usefulness 
expected from this second-hand equipment is made 
and carried through the same as new equipment. 

Large Equipment 

If a steam shovel is used on the work its useful- 
ness may be based on a period of three to four 

114 



years. If it cost $4,800.00 and is estimated to last 
four years, the charge per month against "Depre- 
ciation on Equipment" to the permanent construc- 
tion benefitted by the steam shovel work would 
aggregate $100.00. 

Repairs to Equipment 

All repairs to equipment are charged direct to 
the feature on which the work is being done. 
After a period of three years, when taking a 
physical inventory of large equipment, it may be 
found that several parts which have been replaced 
during this period of service have put the shovel 
in such condition for all practical purposes that it 
is worth nearly as much as when it was purchased, 
or say $3200.00, instead of $1200.00, as the rate of 
depreciation would indicate. In such event, the 
features to which depreciation has been charged 
should be credited with their prorated portion of 
the difference between the estimated depreciation 
and the actual. If, on the other hand, the shovel 
deteriorates more rapidly than was estimated the 
"Permanent Construction" features should be 
charged additionally to cover the deficiency be- 
tween estimated and actual period of usefulness of 
the machine. 

Plate No. 14. Form No. 201. Stock Account Form. 

Printed both sides. Both sides shown on plate. 

Storehouse Operation 

The operation of the storehouse is one of the 
very important features of the average construc- 
tion project, and the position of storekeeper and 
property clerk, when combined, is a responsible 

115 




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Plate 14. — Stock account card. Size 4x6 inches. Printed 
on two sides. Both sides of card shown above. This is also 
used as a price card by purchasing agent and a perpetual 
inventory record. 



place. Construction work frequently is located 
some distance from the jobbing- centers and in the 
storehouse must be kept a reasonable amount of 
repairs to equipment, small tools and general sup- 
plies for the operation of the work, as well as a 
full line of groceries; frequently clothing and 
notions, tobacco and candies. The chief clerk 
should keep in very close touch with the advanced 
construction program of the superintendent of 
the work, and, insofar as is possible, anticipate the 
future need of supplies, materials, possible repairs 
to equipment and merchandise necessary for the 
proper handling of the messes and the mercantile 
stores, as well as the construction work proper. 

Anticipate Possible Slow Deliveries 

In placing orders provision should be made to 
counteract possible slow delivery, and every pre- 
caution taken to insure all goods reaching the 
storehouse in such time as not to delay work. De- 
lays on construction are usually costly from sev- 
eral points of view, and the careful operation of 
the storehouse by practical men can in a large 
measure prevent some causes for delay. 

The operation of the storehouse on a large 
project requires much study and constant plan- 
ning as the work progresses. 

When the project is of such size as to require 
the operation of a regular storehouse for the 
handling of supplies on the work a stock card on 
the lines illustrated on Plate 14 is recommended. 
This form should be modified to fit special condi- 
tions on the particular project for which it is 
intended. If the stock is segregated, the different 

117 



segregations may be shown as indicated on this 
card, "Storehouse Stock 1," "Raw," "No. 2" and 
"Manufactured Stock" which are the four segre- 
gations of the storehouse accounts for which this 
card was drawn, It will also be noted that this 
card covers stock in four different plants, "Loju," 
"Olympia," "Jam," and "Woodburn," a check 
mark in any one of those squares and a circle 
around the storehouse stock segregation, indicates 
that the stock is at that particular plant and of a 
nature as indicated by the stock number within 
the circle. 

A Separate Stock Card for Each Item 

As the stock is received into the storehouse, a 
card is made up for each item of stock. A full 
statement of facts connected with the purchase 
is shown; name of firm from whom purchase is 
made ; date of purchase ; date of arrival of goods ; 
condition in which they arrived; freight allow- 
ance and conditions of freight payments ; car num- 
ber and seal number in case of carload shipments. 
The invoice unit price is shown in the heading and 
the invoice "gross price" in the body of the form. 

The method of arriving at the "Storehouse" 
unit price is indicated on the card and it is the 
price at which the goods should be charged out of 
the storehouse. If ten cars of sugar were pur- 
chased and piled into the same space in storeroom 
at intervals of ten days or longer apart and none 
of this sugar was used until all ten carloads had 
been unloaded and it so happened that each car 
contained a different number of sacks and each 
carload also was billed at a different price, it 
would be possible by the proper use of this stock 

118 



account card to clear the storehouse and balance 
the stock account. If one card called for the deliv- 
ery of 500 sacks of sugar at an invoice price of 
$8.95 per cwt. f. o. b. Chicago, five hundred sacks 
of sugar, from the storehouse stock (this might be 
from any one of the different priced carloads in 
storage there) would be delivered and priced at 
the unit price shown on that card as belonging to 
this lot. This action would be continued with each 
card for each lot until the entire stock of sugar 
was charged out. In the end each car would be 
charged out on the basis of purchase price, freight 
and handling charges added. The above is an 
exaggerated example of the function of this card. 
On the reverse side is shown the withdrawals as 
they are taken from stock and the feature and 
number to which charges are made. Number 8 as 
a prefix under column "Charge to" would indicate 
"Camp No. 8" and "Mess House Construction and 
Operation" feature. Item 227 is "subsistence." 
The charge then is "subsistence to mess house 
camp No. 8." 

A Percentage Added to Absorb Overhead 

The "percentage added" column is for use in 
cases where a certain percentage is added to 
storehouse stock to absorb charges for deliveries 
from stock, storekeepers' salaries, rent of build- 
ing, taxes on stock, and such other items as go to 
form a sort of "overhead charge" against the 
storehouse stock. This item is also recorded on 
the reverse side of the sheet in order to make pos- 
sible its segregation when a physical inventory 
of the storehouse is taken periodically and to know 
definitely how much has been charged out on ac- 

119 



count of percentage and how much account of 
actual stock. When this arrangement is used a 
regular "Percentage Account" is opened in the 
storehouse books. 

Relationship of Storehouse and Purchasing Department 

There are many good ways in which a store- 
house stock may be handled and a great many 
more poor ways for doing this. The proper oper- 
ation of a storehouse account requires much study 
by the storekeeper and by those in charge of the 
project. All conditions under which the work on 
project is handled must receive consideration: 
how far from transportation; relationship of 
storekeeper with the purchasing department; 
volume of business handled, all have a very 
direct bearing on this department. Sometimes the 
storehouse and purchasing are handled by the 
same person. Whatever the manner of operation, 
the storehouse should have a very close relation- 
ship with the purchasing department and the 
purchasing agent should know intimately at all 
times just what is in stock to enable him to make 
intelligent purchases. One man should be held 
absolutely responsible for the storehouse stock — 
assume responsibility for everything which goes 
into the storehouse and what is removed. If this 
is done, then definite personal responsibility may 
be fixed for improper handling of the stock and 
for shortages should they develop. This fixed re- 
sponsibility is important as much for the giving 
of credit where credit is due, as for placing re- 
sponsibility when something has been "bungled." 



120 



Responsibility Should Always Be Definitely Fixed 

Where one man is held definitely for the opera- 
tion of the storehouse and handles the stock both 
incoming and out going, much of the grief fre- 
quently found in this particular branch of the 
work is eliminated. Men of judgment and 
diplomacy must be secured for this work, and it is 
difficult to state which of the above accomplish- 
ments they may be called upon to use most fre- 
quently. The storehouse on a project or in any 
work should be entirely separated from all other 
work and handled as a complete and separate unit. 
Each man in authority should be definitely and 
adequately impressed with the fact that while the 
store stock may belong to the same outfit which 
pays his salary he has no more license to take one 
article from it without going through the formal- 
ity of issuing a requisition, or such other pro- 
cedure as may be decided upon to protect the 
storekeeper, than he has of going to the "little 
corner grocery" and taking goods off the shelf. 
The store stock is the same as money, it frequent- 
ly represents great sums of money in merchandise, 
and its stock should be guarded as closely as other 
funds of the company. 

The storekeeper has a difficult position at best 
and if he is considered by his superiors capable of 
handling the position, he is deserving of the assist- 
ance of, and patience from, every man on the 
work. The storekeeper, however, should also do 
his part by making every effort to deliver goods 
promptly and display a considerable amount of 
self control when things are inclined to go wrong. 
He must continually study his stock and the needs 

121 



of the project, talk frequently with the construc- 
tion men, draw them out as to future plans and 
requirements. Their minds may not always be 
on ordering ahead, that is the storekeepers work 
and he should take every ligitimate means to learn 
in advance the needs of the work and place his 
requisitions or orders accordingly. Watch the 
markets and keep stocked up ahead of prospective 
advancement in prices. If roads are poor in the 
winter months or at certain seasons in the sum- 
mer, keep this in mind and order for delivery when 
road conditions are at their best. This makes good 
interest on the money invested in the stock. It is 
a commercial enterprise and should be watched as 
such. The storekeeper must display some of the 
qualities of the live aggressive and long headed 
business man if he is to make a success of his 
work. 

Stock Card Has Numerous Functions 

This stock card shown on Plate 14 is also used 
as a combination price card for purchasing depart- 
ment, a perpetual inventory card, a stockman's 
price card and as an index to firms with whom 
business is transacted. 

Plant Requisition Book 

A very handy little general form is what is 
known as a "Plant Requisition Book." This is 
used for requisition purposes, but also for numer- 
ous other purposes, including that of general 
memorandum book and confirmation of verbal 
orders. The form should be small, made up in 
book form with a perforated white sheet which is 
to be torn out when an order is written and a sheet 
of another color not perforated which carries a 



122 



copy of all orders written, or requisitions made. 
This is used as a general purpose form in addition 
to the use which its title indicates it is for. 

Herewith is copy of form which has been used 
for the purpose above described. The size of this 
form is 314 inches wide by 5% inches in length: 

Form 205 8-11-19-5000 

DAT E 1919 

PLANT REQUISITION 

Storekeeper: Please deliver to me by 

the following articles: 



For what use 



Signed- 



Instruction for its use, printed on inside of 
cover, follow : 

Instructions for Use of Plant Requisition Book 

"As early a date as possible after it is known 
an article is to be required — a requisition should 
be filed with storekeeper and as much time given 
for filling as can be allowed. This does not mean 
that the Purchasing Department may not fill the 
order sooner than the date mentioned, but it gives 
that department an opportunity to secure prices 
from several firms, or to group smaller purchases 
and secure better prices. Emergency orders are 
usually expensive and it is desired to have as few 
of them as possible. 

In cases where goods are required immediately 
the storekeeper will phone the order to Purchasing 
Department and prompt attention will be given. 

Care should be taken to give sufficient informa- 
tion on requisition form to assist to a reasonable 
extent in preventing erroneous purchases. All 
plant requisitions will be approved by the General 
Plant Superintendent. Purchases will be made on 
emergency orders on approval of local plant super- 
intendents, and afterwards presented to General 
Plant Superintendent for his information. All 
other orders will be placed before General Super- 
intendents of plants before purchase is made. 

The work for which articles are required should 
be mentioned on requisition in such manner as to 
enable Cost Department to make proper charge. 

In all cases state at top of requisition when de- 
livery of goods are desired." 



124 




Plate 12. — Graphic example of condensed office records 
made possible by use of numerical method of accounting. 
Three larger books, 1, 2 and 3, were replaced by two 
smaller inexpensive ones, "A" and "B," in lower left hand 
corner. The size of the small books is 8 1 /2xl0% inches 
and 7%x5 inches and all forms shown on accompanying 
pages except card forms, are of a size to fit one or the 
other of the above two binders. 



But Few Forms Should Be Used 

The forms shown on the foregoing pages are 
considered some of the more important used in 
construction accounting. The number of forms 
and their kind, for use on construction work, de- 
pends largely on the nature of the work and the 
manner of handling it. Usually a man is to be 
found on such work who develops ability in pre- 
paring practicable forms and the job of censoring 
all forms should be in the hands of a man of this 
type and he made responsible for the kind of 
forms to be compiled on the work. Frequently this 
nature of work has a tendency to run too largely 
to form making, and without mature study as to 
the function the form will actually fulfill when 
put into operation. The result is piles of obsolete 
forms. The fewer forms that work can be handled 
with usually mean better results. The few should 
run high as to quality, however. 

Plate No. 12. Condensing of Records 

This plate is a graphic example of condensed 
office records by use of the numerical system of 
accounting. It shows the books formerly used by 
the Oregon State Highway Department (Nos. 1, 2 
and 3) and those later in use (A and B). Note 
the dimensions of the former and compare with 
the dimensions of the latter. Aside from all other 
advantages of the condensed record, it is believed 
that we now have a much more useful set of books, 
both as to cost data and general accounting re- 
quirements, than was possible with the former 
system of three large books. The two small books 
are kept in a small pigeonhole in the bookkeeper's 
desk, convenient for quick reference, while with 

125 



the larger set it was necessary to keep a special 
rack for them and was impracticable to work on 
more than one at a time on account of the space 
required when open. Engineering data is almost 
universally gathered in small, compact pocket size 
books. There is no good reason why accounting 
and costkeeping records should not be condensed 
in the same convenient form. The smaller book 
(B) contains all general ledger accounts, cost 
ledger accounts and summary of financial state- 
ments. Also all allotments from general fund. 
The larger book (A) contains the voucher register 
for both county and state vouchers, which are 
divided into sections and a check register covering 
county and state expenditures, also divided into 
proper sections. The advantage of working on 
small forms is readily apparent to one who has 
practiced accounting. 

Small Binder Fills a Need 

The author has for years advocated and used 
the small general office forms. The cost ledger 
and general ledger forms are each 414x7% inches 
(pocket size) . These forms are found as suitable, 
in conjunction with the numerical system of ac- 
counting, for work aggregating millions of dollars, 
as they were originally found to be on smaller 
work. The small binder has come to stay, it is the 
practical book to use, not only on construction 
but also on commercial accounting work and has 
many advantages with none of the disadvantages 
of the old large binder system, which is used more 
because of a "habit" than from necessity, or good 
sound business reasons. The author is now install- 
ing this system complete, small binders and all, in 

128 



one of the largest and most complete fruit prod- 
ucts manufacturing plants in the west — a one and 
one half million dollar corporation — with several 
plants in the states of Oregon and Washington 
and which maintains its own national selling or- 
ganization. 

Reduction in Size — Increase in Quality 

The fact that records are reduced to pocket size 
does not mean that any essential data has been 
eliminated. On the contrary the costs are secured 
in much more detail and volume in this condensed 
form than had ever been the case with the old 
method used by the Oregon State Highway De- 
partment, wherein three large binders, which 
combined would entirely cover the top of a large 
sized table were used. The fact that the first 
record taken from the field is in such form that 
all detail is forever available has resulted in con- 
siderable reduction in the expense of gathering 
costs, over other methods which secure the origin- 
al data in the field in one manner and assemble it 
in an entirely different manner when it arrives 
at the general office, or at the office of the dis- 
trict engineer. There should be the closest rela- 
tionship between the field and general office in the 
gathering of costs and the costkeeper is or fre- 
quently can be the connecting link, if he is the 
right kind of a man and embued with a reasonable 
amount of resourcefulness and diplomacy. 



129 



GENERAL INFORMATION REGARDING 

ACCOUNT NUMBER BOOK AND 

FORMS ILLUSTRATED 



Also the use of the system in general 
Few Numbers Are Used at One Time on Each Project 

The fact that the account number book con- 
tains twenty-two features and 885 items (count- 
ing the blank spaces as items) should not cause 
discouragement or a decision to go no farther. As 
a matter of fact, a timekeeper on the ordinary job 
will not be required to use more than thirty to 
forty new numbers in any one month, and during 
the progress of the work has sufficient time to 
become gradually familiar with all the items of the 
features with which he is concerned. The unused 
numbers in the book need cause him no worry. For 
instance, a new camp is constructed. The first 
week the timekeeper finds he has use for a few 
of the numbers under "Camp Construction," 
"Messhouse Operation," "Corral" and "Black- 
smith Shop." Then follows the "Clearing of 
Right of Way" and "Construction Sub-Grade" 
numbers. About this time he may find that he 
has occasion to use a few of the numbers from 
each of the features mentioned, as there may be a 
few repairs and additions to the camp buildings, 
the burning of brush along the right of way and 
items of such character, but he has become 
familiar with the principle, lost his fear of the 
large number of items and discovered how simple, 

130 



on actual work, the method proves; memorizes a 
few of the most frequently used numbers, and his 
troubles are over. If all other records of the 
work were lost the cost ledger in itself would give 
a fairly good record of the monthly progress. 

No System Is Entirely "Fool Proof" 

While the method of accounting as outlined in 
the foregoing pages has been equal to all the 
emergencies in accounting that arose on the con- 
struction of numerous projects on the Pacific 
Coast, the two largest of which was the construc- 
tion of the Tumalo Irrigation Project in Central 
Oregon and construction for the past number of 
years by the Oregon State Highway Department, 
an accounting system, regardless of its adapta- 
bility to work intended to cover, is not self-oper- 
ative and should not be expected to produce re- 
sults without the exercising of that experience, 
judgment and care which is required to successful- 
ly operate any other line of business. Success in 
field accounting and accurate workable cost data 
will be secured in the same measure as the ac- 
countant is found to have energy, judgment and 
experience in such work. 

"Horse Sense" vs. College Training 

Occasionally on engineering work men appar- 
ently well equipped technically in engineering, but 
who do not develop sufficient judgment and abil- 
ity to handle engineering, are considered capable 
of handling costkeeping and field accounting. Al- 
most anyone who is able to write can mark X's 
in a timebook and 0. K. on invoices. If costs are 
desired on which a contractor dare risk his money 

131 



and an engineer his reputation, a man who is a 
failure in other lines, is usually not a fit person to 
handle costkeeping or field accounting, regard- 
less of the university or college from which he 
may have graduated. 

Accounting a Profession 

Accounting, construction or mercantile, is a 
profession in itself, and like other professions, has 
many degrees of efficiency and inefficiency. To be- 
come proficient an accountant requires long and 
careful training; must be able to exercise good 
judgment and acquire an intimate knowledge of a 
vast amount of detail. 

Purchasing 

To successfully handle purchasing on the aver- 
age construction project he should have a work- 
ing knowledge of prices and qualities of a more 
general line of merchandise than that handled by 
general mercantile companies. He handles all the 
goods they do; must know grocery values as in- 
timately as competing salesmen know each other's 
brands, and in addition frequently purchases a full 
line of general construction equipment, ranging 
from steam shovels and industrial railroad out- 
fits to the plasterer's trowel. Various manufac- 
turing enterprises are in progress on the average 
construction project, especially where a machine 
shop is operated, on which he must have the same 
intimate knowledge of costs and values that the 
modern manufacturer requires of his employes. 

Of course, all accountants on construction work 
are not possessed of all the above qualifications, 
but in a large degree the result of their work will 

132 



be successful to that extent by which they measure 
up to the qualifications outlined. 

The numerical system of accounting is quickly 
installed and its principles easily understood — 
more so than the average system on either con- 
struction or mercantile work — but do not interpret 
this statement as meaning that its efficiency can 
not be partly or wholly impaired by inefficient 
handling. 



333 



SUGGESTIONS ON ORGANIZATION 



' 'Education is not the result of a course of study 
—it is the result of a course of experience. ' ' 

—ELBERT HUBBARD, in Roy croft Reminders- 

Organization building is a combination course 
of "experience" and study, and it is not believed 
there is any standard form to follow. However, 
there are a number of principles having a bearing 
on this important function which may be observed 
with profit. 

Organization is the banding together of various 
units into a harmonious working body. These 
units may be individuals or groups of individuals. 
If made up of groups and each group is working 
unitedly; then the main organization is undoubt- 
edly progressing satisfactorily. If results with 
the main body are not satisfactory then search 
should be made for the trouble, unit by unit, until 
detected. This process eliminates the necessity of 
upsetting the entire body, when the trouble is 
located in one small unit. When all units are 
"marching abreast" and on "quick time" a 
real organization capable of doing things, is "on 
parade." 

Higher executives may do much to assist in the 
advancing of efficiency by a little care and atten- 
tion to the first principles of organization. 

The seemingly unimportant acts of an executive 
in the presence of a force of employes will some- 

134 




Plate No. 15. — Organization is determined by nature of work, location, and other conditions, rather than by cut an dried rules, 
shown as a "suggestion" only. 



This plate is 



times do more to offset the securing of satis- 
factory service by the men in direct charge of 
employes than all the hard work they do to perfect 
their working forces. An executive, perhaps, is 
on such friendly terms with some of the 
subordinates as to encourage belief that their 
immediate chief has but little to say regarding 
their demeanor when it comes right down to brass 
tacks and soon this attitude permeates the whole 
organization. No one appears to exactly diagnose 
the trouble, but results are not being obtained by 
the sub chiefs. Elaboration on this subject is not 
necessary. It is matters of this kind which prove 
very annoying to the man who sits up nights draw- 
ing organization charts and planning his work in 
an endeavor to get more efficiency into his work 
for the benefit of the firm by whom he is em- 
ployed. 

Intelligent organization demands that the indi- 
vidual who is responsible for the production of a 
certain thing, be given all the support within the 
power of the employer to this end. If the produc- 
tion is something he is to turn out with his own 
hands, then he will require tools and materials. 
If it is to be done by several units with him re- 
sponsible, then he certainly must have more than 
superficial authority to secure best results. If he 
is considered capable of handling men, then he 
certainly can and should expect his superiors to 
respect that authority. If they desire his work 
to be handled in a certain manner, or any member 
of his force to change methods of operation, the 
one in whom reposes the responsibility for the 
completed work is the one to whom, and through 



139 



whom, orders should be given. This principle 
applies to every kind of work of whatsoever 
nature and when the rule is not followed (presum- 
ing always that the sub chief is competent, and if 
he is not then there is no excuse for his remaining 
in authority) the efficiency of the performance is 
hampered to whatever extent interference is 
allowed. 

Plate No. 15. Organization Chart 

A graphic chart, or "picture" outlining clearly 
and distinctly the duties of all employes, the rela- 
tionship of departments, and the responsibilities 
of the chiefs of sections, is usually more quickly 
grasped and understood by employes than an 
attempt to convey the same information by letter. 

The average employe who is able, wide awake 
and ambitious, realizes that he must, in a large 
organization, have some protection in order to 
secure credit for work which he is honestly en- 
deavoring to do in a little better manner than his 
associates. One way to protect individual em- 
ployes, where the work is of such nature as to 
permit it, is to devise an organization chart, or 
instructions, which will outline each employe's 
duties distinctly and at the same time indicate 
to the entire organization the duties of each mem- 
ber. This gives each one the advantage of know- 
ing where to begin and where to end and his full 
responsibility. Of course an organization that is 
worth while is made up of employes who will do 
more than their particular piece of work, when 
they have the time, and someone else should 
have assistance, but usually each one who is com- 

140 



petent wishes to have certain sections of work and 
be enabled to make as good showing as possible. 
This segregation in itself will do much toward 
encouraging better results, where such results are 
rewarded in a reasonable manner. 

Each organization must be built to fit that cer- 
tain work which is before it, and even though the 
work may be much the same, an organization for 
results is dependent entirely on the type of em- 
ploye which is available ; the location of the work, 
facilities for doing work, and many other condi- 
tions of this nature. 

The organization chart shown on Plate 15 was 
made up to fit certain conditions and met them as 
they were. The arrangement speaks for itself. 
Where a competent purchasing agent is available, 
in addition to his purchasing he could be made 
responsible for the equipment and records and 
operation of general and field stores. The cost 
man in addition to cost accounting, could as- 
sume responsibility for the timekeeping forces, 
thus relieving the Auditor of considerable 
detail work. Other changes might also be 
made to advantage if the personnel of the 
force is made up of employes capable of handling 
more responsibility and who are sufficiently com- 
petent to handle men. One of the foremost prin- 
ciples in getting the maximum results from men 
is to treat them properly, regardless as to their 
own attitude; and endeavor always to improve 
their methods. Not only show them short cuts in 
manners of handling work, but go through the 
work with them and demonstrate better ways 
which they may not have knowledge of. Be 

141 



patient, thorough, and persistent with them. This 
coupled with an honest "from the heart" fairness 
will hold and improve most any kind of an organ- 
ization, if the leader has average ability along 
other lines. 

The paragraphs which follow are more or less 
at random and have no consecutive relationship. 

Practicability Eliminates Favoritism 

A real executive's education has taught him to 
deal with the practical, rather than the theoretical 
side of problems. Results are the only yard sticks 
by which he measures his organization. Favorit- 
ism has no place in his make up. Justice only is 
the ruling factor. 

The Advantage of Being "Just Natural" 

It has been observed that the best employes 
usually are those which appear natural and work 
naturally. There is a tendency for young men 
and sometimes older ones who ought to have 
learned better, to attempt to mimick someone else ; 
who apparently are ashamed of their own station 
in life and want to give an impression that they 
are what they are not. If a person is honest, 
normally intelligent, making a systematic effort to 
improve himself, and doing the best he can with 
what he has, he should have nothing of which to 
be ashamed. When a person is found attempting 
to appear what he is not (and such people seldom 
fool anyone except themselves) it is to be assumed 
that he lacks some of the above qualities and is 
ashamed of his real self. When a man on a mod- 
erate salary attempts to "ape" the well to do and 
spends his money extravagantly, he is to be 

142 



watched very carefully by his employer. This is 
one of the first steps toward actual dishonesty. 
Besides being ridiculous in the eyes of intelligent 
people, it does not pay in dollars and cents to 
attempt deception along these lines. 

The Successful Chief a Question Mark 

Men in administrative work should carry in 
their minds a question mark continually. Intelli- 
gently question practically everything; take 
nothing for granted until amply proven to be the 
fact desired. Look for errors and for opportunities 
for improvement. This view point, reasonably and 
pleasantly carried out, is what makes a strong 
working organization, one whose individuals will 
soon get the habit of questioning themselves in an 
endeavor to forestall any shortcomings which may 
be found in their work when they appear before 
the chief with a completed job. Honest straightfor- 
ward questioning will strengthen an organization 
wonderfully, while with an attitude of taking 
everything for granted, and no questioning, a 
good band of employes will soon become listless 
and lacking in necessary interest for good work. 

The Executive Must Have Full Confidence 
of His Associates 

An executive cannot always tell in detail just 
why he makes certain requests. He should have 
the respect of his organization and they must act 
largely on faith. Loyalty in an organization is 
frequently of more real value than brains minus 
loyalty. A good organization will endeavor in 
every manner possible to carry out intelligently 
the direction of its leader, whether or not it may 

143 



agree in every particular as to the wisdom of cer- 
tain actions. Of course there arises situations in 
which it may be perfectly proper to question the 
chief regarding some manner of procedure. A 
competent organization leader will invariably 
listen to his subordinates if they approach him 
properly. When he then tells them he still believes 
his original order should be complied with, it is 
time for the organization to put its shoulder to the 
wheel and push as though the thing were being 
done as they would have it. 

Leaders Develop Their Own Methods of Procedure 

Nearly every leader has a manner of his own 
in handling his subordinates. Successful opera- 
tion comes largely by the spirit shown in both or- 
ganization and leader, rather than in certain 
prescribed and set rules of procedure, and this 
spirit is one of willingness "to take and give" 
which requires a large measure of loyalty to the 
business itself, rather than simply to any one 
person. Such loyalty inspires the overlooking of 
many things that would not go unnoticed without 
it. Loyalty, pure and wholesome is probably more 
appreciated by employer and leader, than any 
other one qualification an employe might have. 
When loyalty and ability are combined in one man, 
building for that person is only a matter of time 
and patience. 

A Good Mixture 

Energy and patience is another very good com- 
bination for a man to possess. These two qual- 
ities are not always found in the same person. The 

144 



last portion of the "Psalm of Life" expresses a 
very good sentiment along this line. 

"Let us then be up and doing 

With a heart for any fate; 
Still achieving, still pursuing, 

Learn to labor and TO WAIT." 

Most of us learn to labor but with the "doers" 
it is sometimes difficult to "energetically wait." 

An Organization Improves As Initiative Develops 

Great care should be exercised by the head of 
an organization to encourage initiative. He should 
know intimately the dispositions of his force and 
not let himself become prejudiced on account of 

personalities which are not agreeable. Some of 
the very best and most capable employes, and the 
most reliable as well, if handled properly, are 
those with dispositions which we might hope were 
different, to say the least. The leader of an or- 
ganization should be a man who has naturally a 
yearning to "build up" and his organization must 
be studied from that standpoint. Fit the men 
where they are best suited to work. If he has men 
who are very capable but hard to work with, spend 
a little time trying to help them overcome their 
shortcomings. Talk to them plainly and straight 
but privately. Most men will stand most any kind 
of advice from an employer, if they are convinced 
that the employer has their interest at heart. 
There is no harm in telling an employe honestly 
his faults, if done in the proper spirit. Help 
him over the rough places — show him where it 
costs him real money to allow his disposition to 
rule instead of he ruling it. Such a man salvaged 

145 



from himself will usually make a most excellent 
and reliable employee, and is worth all the trouble 
necessary to straighten him out. 

The Man With a Wish-bone Where a 
Backbone Is Required 

Some men, when work becomes trying are al- 
ways threatening to "quit." Such men should be 
encouraged to keep their word the first time they 
make such a statement as they are either bluffing 
or weaklings and neither of those qualities make 
valuable employes. All have troubles, but it is only 
the weak who lay down under them. Leaders are 
developed through difficulties and it is the ability 
to handle trying situations that makes life worth 
while and strengthens confidence in ourselves and 
those who stand with us when the problems look 
hopeless. The "other fellow's" position is usually 
seen in a more favorable light than our own. This 
fact recalls to mind a verse picked up from "Can- 
nery Notes" which runs about like this: 

"Happy the man who loves his work, 

And loves his work alone; 
For many a man loves another man's job 

When he ought to be loving his own." 

Snap Judgment a Poor Foundation 

When changes in the method of handling certain 
work are contemplated, instead of taking snap 
judgment and authorizing the changes as re- 
quested by an employe who is perhaps interested 
only in one side, a very good and conservative 
action by the chief is to call together all the em- 
ployes who will be affected by the change, 
stating to them just what is contemplated. 

146 



Secure their opinions as to the value of the change. 
If there are objections, weigh their merits care- 
fully. The head of the organization is then pre- 
pared to go over the matter methodically and in- 
telligently, make his decision and have it stick. 
Snap judgment decisions which are later counter- 
manded cause confusion and loss of respect 
necessary from subordinates for their cihef if 
maximum results are secured. 

Deserve Success 

The writer, when in Pensacola, Florida, noticed 
an inscription on a Confederate monument for 
Stephen R. Mallory, Secretary of the Confederate 
Navy, Jefferson Davis, Confederate President, 
and others, which ran as follows : 

"'Tis not in mortals to command success, but 
we'll do more, we'll deserve it." 

That sentiment is good and one we might all 
profitably dwell on and endeavor to practice. 

A Moral Obligation 

When a man agrees with himself that he will do 
this or that good and necessary thing "after 
while" he issues a promissory note to himself with 
his future as collateral. If he redeems that prom- 
ise his future is redeemed ; if not, it does not take 
long for his chief creditor "Opportunity" to show T 
him a bankrupt in the Courts of Success. 

Putting Pep Into Dull Work 

When work is of a monotonous nature, the em- 
ploye to make the best time possible should devise 
means of making the work interesting. For 
instance on payroll work where 1500 men were 

147 



paid each month, the payroll clerk had an exceed- 
ingly hard time to keep his mind on the work 
in such manner as to secure satisfactory results. 
He computed every item from the timebook while 
entering it on the payroll with a typewriter. The 
clock seemed to move very slowly. Finally he hit 
upon the scheme of "racing" with the clock. He 
made a wager with "himself" that he could enter 
a certain number of items per hour. Went at his 
job with all his might, lost the race with the clock 
and tried it again. In looking at the hands of the 
clock from that angle he found they moved very 
rapidly and he was enabled to put enthusiasm into 
his work and produce a greatly increased volume. 
It might be added that this payroll clerk very 
shortly became chief clerk of a large organi- 
zation. Initiative and action always have their 
reward. 

Be a Producer 

Each living mortal should be a producer of 
something, and strive to make that " something' ' 
of greater and greater value as time goes on. The 
apparent idea held by some awfully misled indi- 
viduals that to be of service is degrading should 
be the cause of pity by those who produce. Every 
man can produce if he will. To consider one kind 
of labor or service more honorable than another 
is a mistaken idea. It is true that perhaps one 
man's labor, on account of his greater ability along 
certain lines is of more commercial value than 
another's, and should have more recognition, but 
the matter of honor in service comes largely from 
the spirit in which that service is performed. The 

148 



man with the pick and shovel doing with all his 
might what has fallen to his lot to do, and with 
the desire of making his efforts count for some- 
thing tangible, should be considered in a more 
favorable light than the more fortunate and per- 
haps better educated man who does his w r ork 
grudgingly, and as little as he can find it possible 
to "get by with." The spirit of service performed 
counts mightily in all walks of life. Honest service 
is never degrading. The attempt to get through 
the world without it many many times indicates 
an exceedingly low type of civilization and is 
something of which any healthy, normal and able 
bodied mortal has good reason to be ashamed. 

Why Should There Be Friction Between Office and Field? 

There very often, and for little or no apparent 
reason, develops friction between general office 
and field, or between division office and general 
office on construction work. The reason perhaps 
is usually traced more or less directly to the jeal- 
ousy of someone, or at least the trouble was 
started that way, became a fixed fact, and con- 
tinued long after the real cause was forgotten. But 
friction in any organization, regardless as to why 
or where, is almost always, for all concerned, an 
expensive condition. It wears the nerve energy of 
the principals which perhaps is the most expensive 
factor, and in addition to that it costs someone 
real dollars and cents, when a grudge or ill 
feeling is allowed to "ferment." One way 
to minimize this to a considerable extent, is 
to have occasional meetings of the field and office 
men under conditions which make it practically 

149 



impossible for them to "talk shop." Give them an 
opportunity to become acquainted. Perhaps the 
factions who are considered enemies on the work 
will find they have much in common in social life, 
or on a fishing trip, camping, or some other kind 
of recreation. It is always easier to quarrel by 
"letter" than with acquaintances face to face. If 
we know "our man" personally, perhaps some of 
those insinuating letters will not be written. Why 
a mean or domineering letter anyway? Are we at 
our work to satisfy a grudge or to secure results? 
Which are the most important, accomplishments 
or satisfaction? Each man should ask himself 
these questions when by himself "in the dark," 
answer them honestly and then act accordingly. 
"Getting even" has put many otherwise good men 
out of commission and what was it worth ? Talk- 
ing to one's self is not an altogether profitless 
pasttime, if he talks on the proper subject, and 
answer himself straight. 

Faith and Charity — Close Friends Always 

Men should have faith in each other; in them- 
selves; in the firm for whom they work; in their 
subordinates ; and in their neighbors. Occasionally 
a man with this attitude is "stung" but no more 
often is he mistaken than the man with the per- 
petual grouch who is suspicious of everyone and 
everything — and the condition of mind of these 
two men can hardly be compared. As a rule men 
are honest, the exception is comparatively small. 
Men who are overly suspicious are usually tearing 
down. Take your choice with all that goes with 
either selection. 

150 



The Man AVho Works Nights and Grouches Daytimes 

Sometimes overwork will cause a man to become 
disgruntled and he is inclined to feel that he is 
not getting a fair deal. Such a condition of mind 
will eventually affect this man's efficiency. He 
should be forced to take a vacation and stay away 
from the work. Habitually working nights, regard- 
less as to the cause, will break down a man's effi- 
ciency and employers cannot afford to allow their 
employes to make this a regular rule. When a man 
is kept "sweet" he is usually giving his employer 
much better service than the man who works 
nights and grouches day times. 

A Few Suggestions to Employes 

Following are a few paragraphs taken from 
different sections of a "Manual of Instructions to 
Employes." These paragraphs have been consid- 
ered of sufficient value to bear repeating : 

Two Important Factors 

While in the employ of this Commission, you are 
expected to accomplish two things: First, well ex- 
ecuted work. Second, the co-operation and support of 
the people of the community in which the work is situated. 
One is as important as the other. You must bear in mind 
that your actions will govern the opinion the local people 
will form, not only of the piece of work in hand, but of the 
whole conduct of the department. You should, therefore, 
see to it that this opinion is favorable in so far as strict 
attention to your work and a businesslike courteous man- 
ner on your part can form such an impression. 

Do Not Antagonize 

Highway work is understood by the general public in a 
limited way, and the necessity and methods of surveys are 
regarded by many people as useless and a needless expense. 
As this is public work everyone is more or less interested, 
whether in favor of the work and methods or not, and is 
entitled to courtesy and general information. One man 

151 



needlessly antagonized may hinder road work in a district 
for years. 

A Good Manual a Continual Friend 

This manual, together with the personal instructions you 
are receiving, and department letters which will be issued 
from time to time, are intended to aid you to execute your 
work in a proper manner, and if followed intelligently 
should assist in the accomplishment of the first part of 
your mission. 

Do Not Mix in Local Disputes 

But rules to govern your conduct so as to establish a 
favorable impression are not so easily laid down. In addi- 
tion to your duties you will be required to exercise plain 
common sense in your dealings with the people with whom 
you come in contact. Good sense will indicate the folly of 
mixing or becoming a party to local political disputes, or 
differences of any character whatever. Always give 
courteous attention and consideration to all inquiries for 
information, but should questions be asked on any point 
about which you are in doubt, or your instructions forbid 
you giving such information, explain the situation, stating 
that you will be glad to refer the questions to the general 
office if so desired. If the plan of the work or the methods 
required by the specifications are at all in question, you 
may explain that these are a part of your instructions 
which you do not have authority to change. 

Watch the Small Details Methodically 

Upon being assigned to take charge of a piece of work, 
the employe immediately upon reaching his permanent 
headquarters for that work, should report to the general 
office his post office, telephone or telegraph address, also 
location of nearest express and freight office. He should 
leave his name and address at the telephone, telegraph, post 
office, freight and express offices, and make sure that they 
understand where he can be reached. He should also leave 
a list of the names of the employes under him at the local 
post office that they may receive their mail promptly. The 
general office should at all times be able to locate employes 
promptly by letter or by wire. 

General Office Must Face the Public With Definite Facts 

It is absolutely necessary for the general office to be 
fully in touch with all business transactions and other mat- 
ters of an executive nature on the work under its direction. 
To accomplish this it is expected that field employes will 

152 



take up everything of importance with the general office, 
before final action is taken, except in such cases as con- 
stitute real emergency and require immediate action, when 
reports in full covering them should follow. 

Well Kept Diary Is Valuable 

Diaries should be kept by each employe who is in charge 
of and assigned to definite work, stating briefly the daily 
progress in a general way and recording all events of a 
special nature. These should be accessible for inspection 
from time to time, and remain the property of the State 
Highway Department; and shall be turned in to Auditing 
Department for filing promptly at close of season or sev- 
erence of employe's connection with the department. 

Little "Red Tape" Necessary 

We are endeavoring to handle the accounts with as little 
"red tape" as is possible and believe the State Highway 
Department requires no more "red tape" and probably 
considerably less, than the average large corporation or 
business establishment doing the same amount of business. 
Good business policy, however, demands that accounts be 
rendered in such a manner that intelligent check can be 
made, and it is with this end in view that these regulations 
are promulgated and sent out to you for your guidance. An 
employe's value to the department is based largely on his 
understanding of the requirements of the department, and 
his willingness to adapt himself to those requirements as 
well as his ability to handle the work which is assigned 
to him. 

The Able Chief Does Not "Pass the Buck" 

A man in authority and in charge of a force of 
men should always issue orders for which he 
has authority as coming from himself and 
not belittle his position or his prestige with his 
men by appearing to "pass the buck" and stand 
behind someone else when unpleasant orders must 
be given by saying "He says I must say to you, 
so and so." This "He says" statement takes Mr. 
Chief's prestige away from him and makes him 
simply a messenger with orders from a superior. 
A crew usually look up to a man who is by nature 

153 



and experience a leader and not one who by ap- 
parent "luck" has become a "misfit" in such a 
position, and who has a case of "cold feet" every 
time he is asked to do the things for which he was 
employed. If the order is necessary and proper 
and must be done, stand out and be responsible for 
the issuing of it. That is the way real men grow 
stronger. "Passing the buck" makes weak men 
even weaker. 

Neat Pages and Figures vs. Intelligent Records 

One of the weaknesses of the average book- 
keeper and some accountants is the inclination 
to put more importance on neat pages, than 
on the practical value of records. Too much time 
is spent trying to devise means of correcting 
an error when a straight neat line across the ac- 
count would be the practical, most direct and in- 
telligent manner of handling such a problem. The 
value of a neat record is not to be depreciated, but 
the original and practical function of the record 
is of the greatest importance, and if either is to 
be sacrificed, by all means let us have a little less 
of neatness and more of practicability. Time is 
always an important element in every branch of 
construction accounting and the most direct man- 
ner of doing things, is usually the best. 



154 



THE CONSTRUCTION COSTKEEPER 



When we think of costkeeping it looks simple 
— and seems as though it should be simple. One is 
liable to feel his fitness as an authority on this 
subject to a greater extent after the first month's 
work than after he has spent a dozen years at it. 
It is the expense items that do not appear on the 
surface that are very important in this work — the 
usual expenditures everyone is looking for and 
they are easily assembled, but the difference be- 
tween these very apparent costs, and the ones not 
so easily located, is the cause of many a bankrupt. 

Cost Work Is Important 

A costkeeper should erect a standard — build it 
early in the game and stand there regardless of 
what happens. He can rest assured that an- 
noying and irritating problems will present them- 
selves to him frequently enough to keep his life 
from being dull or monotonous. 

The costkeeper must remember the importance 
of his position — this does not mean that he should 
look upon it, and himself as costkeeper, in such a 
manner as to make it necessary to secure a larger 
sized hat — but he should realize from the first 
when he is placed in a position as costkeeper, or a 
subordinate in the costkeeping department, his 
responsibility to that firm, that on his integrity, 
reliability and accuracy and also his resourceful- 
ness and foresight depends to a very large extent 
the development of a business. 

155 



He must learn to be right — not almost correct, 
but correct, absolutely correct and to be sure of 
his ground. 

"Cannot Edward, Did You Say, 
Chase That Lazy Thought Away" 

The man who makes good on this class of work 
must be many sided, a close observer of every- 
thing which passes, a diplomat, and all the time a 
gentleman. The statements which follow may 
perhaps be prefaced with the few verses which 
have often been read, but which may be repeated 
many more times with profit. 

IT CAN BE DONE 

Somebody said that it couldn't be done, 

But he, with a chuckle, replied 
That, "Maybe it couldn't," but he would be one 

Who wouldn't say so till he tried. 
So he buckled right in, with the trace of a grin 

On his face. If he worried he hid it. 
He started to sing as he tackled the thing 

That couldn't be done — and he did it. 

Somebody scoffed: "Oh, you'll never do that; 

At least no one ever has done it." 
But he took off his coat and he took off his hat, 

And the first thing we knew he'd begun it. 
With the lift of his chin, and a bit of a grin, 

Without any doubt or quiddit; 
He started to sing as he tackled the thing 

That couldn't be done — and he did it. 

There are thousands to tell you it cannot be done, 

There are thousands to prophecy failure; 
There are thousands to point out to you, one by one, 

The dangers that wait to assail you ; 
But just buckle in with a bit of a grin, 

Then take off your coat and go to it. 
Just start in to sing as you tackle the thing 

That "cannot be done" — and you'll do it. 



Cost accounting is a science, not an accident and 
science puts things whence they ought to be and 
not where they happen to be. 



156 



Practical Knowledge of Field Work a Decided Asset 

The costkeeper is essentially a "Field Man." 
Costkeeping is a practical study with but the 
minimum of theory mixed in. The outside man is 
more likely to get at the facts and conditions 
which must be brought out to produce true and 
actual costs, than is the strictly office man. The 
combination office and field man — a man who has 
worked at manual labor of some kind in his early 
life or boyhood and developed practicability and 
later becomes familiar with office methods and 
practices (but not to the extent of desiring to 
wind everything with "red tape") makes a very 
good cost man. A conservative mind is one of 
the strong essentials for a cost man. 

Cost Work Requires Much Detail 

Cost accounting is hard detail work and usually 
means long hours. Unless a man naturally likes 
it, he has but little hope of making a success of it. 
To the man who gets into it right, from his heart 
up, it is a most fascinating occupation. 

New Leaders Are Continually Reing Developed 

A man should not judge or guage his work by 
his pay — do an honest day's work and the pay will 
follow eventually — if not from your present em- 
ployer, from some other observing employer. 
Leaders are developed out of nearly every organ- 
ization, and they are usually sufficiently observ- 
ing and long headed to select those of the organi- 
zations w r hich they leave to fill the important 
places on their own organization. For work prop- 
erly performed the reward is eventually certain. 

157 



Costman Should Know Neither "Friend or Enemies" 

The costkeeper should be neutral — his likes 
and dislikes absolutely must be set aside 
if he is to be successful in that line of work. He 
is dealing with facts entirely and not with "no- 
tions." If John Smith's costs show him to be a 
capable man then John Smith should have the full 
credit and because John Smith does not think the 
costkeeper amounts to very much and the fact that 
the costkeeper does not like John Smith's wife or 
daughter has no bearing on John Smith's cost 
record. It may seem peculiar to see such a state- 
ment printed for the reason that it seems ridicu- 
lous to intimate that costs might be judged by 
anything other than facts — yet it is astonishing 
how few men seem capable of laying aside entirely 
their personal grievances in such matters — and it 
is equally true that many of the failures to secure 
satisfactory results on work may be traced to the 
fact that personalities could not be forgotten when 
cost figures were compiled. A costkeeper, if he is 
at all able, usually has considerable prestige and it 
is occasionally difficult to keep from improperly 
using it. However, any man who uses prestige 
unfairly has but to look ahead a short distance and 
he will see his path pointing downward and con- 
tinuing downward until he can measure up to a 
real man's standard. 

The Good Guesser Is Out of Place Here 

There is no room in cost work for guessing. 
Facts are facts and should be compiled as such. Of 
course a costkeeper's friends change frequently. 
When he reports good costs on one set of jobs, 
there his friends are found, while later when the 

158 



costs are not so good, or perhaps bad, then they 
are arrayed against him. He can do much to 
overcome some of the opposition that occasionally 
attaches itself to men in his line of work, by 
taking a few minutes occasionally and going over 
certain foremen's costs with the foremen them- 
selves. Give them an idea of the detail that is 
carried and the care with which the units are 
checked. Show them the reason for some of their 
unusual costs so that they may better know the 
amount of labor and time that is put upon their 
work. They should also be shown the reason for 
certain "red tape" which men on construction 
projects usually call any kind of requirement from 
the general office. 

The one predominant thought in practical ac- 
counting is to get intelligent and prompt results, 
not figures only. A cost statement should be at- 
tractive and as readable by men who are in touch 
with the work as a newspaper. 

Accompanying Narrative Important 

As supporting narrative for charges against 
the various account numbers, and for historical 
purposes, the costkeeper should have a carefully 
kept diary covering all important events during 
construction. 

Another very necessary permanent record in 
connection with the keeping of costs on construc- 
tion work, is a comprehensive narrative statement 
covering such items as wages paid the various 
classes of labor, cost of materials and supplies on 
the job; rental and purchase prices of equipment; 
the kinds of equipment used, with a little elab- 
oration on the good or weak points and the meth- 

159 



ods employed to improve the service of the equip- 
ment; weather conditions; the condition of the 
labor market; distance from the project to the 
nearest shipping point, and any other data which 
has a direct bearing on the work performed. 

Provide Intelligent Data for Future Use 

The value of the cost record for use in subse- 
quent years as a basis for other estimates will 
depend largely on the fullness and accuracy of this 
narrative statement. Cost records of two years 
ago are of very little value today as a basis for 
estimates without such a narrative, owing to the 
great fluctuation in prices of material, supplies, 
and labor. 

Cost Man Should Work Directly Under Chief of Project 

A finished mechanic, to accomplish the best that 
is in him, must have good tools. These he does not 
abuse, his reputation depends largely upon their 
being kept in good condition. 

A competent accountant, or cost man on con- 
struction work to accomplish the best there is in 
him must also be supplied with proper equipment. 
His equipment consists largely of sufficient direct 
authority to enable him to secure the proper data 
on which to base his cost record and build up uni- 
form and complete records. He should report 
direct to someone high in authority and have the 
support of that person so long as he is re- 
sponsible. If he is a competent man, and possessed 
of sufficient judgment to make a good cost ac- 
countant, he will no more abuse the authority 
given him, than the finished mechanic will his 

160 



tools. The soundness of this logic is unquestioned 
so far as the mechanic is concerned. Does not the 
illustration apply with equal force to the ac- 
countant? 

County Officers Should Be Encouraged to Keep Costs 

It seems to be a general impression that the 
greatest handicap by some counties in securing 
authentic cost records is due to the fact that much 
work is handled by supervisors who are not suf- 
ficiently intelligent or interested in their work 
to give serious thought to practical cost keeping. 
If this is a fact, undoubtedly the reason for this 
condition is because they have been loaded down 
with numerous forms, report blanks and litera- 
ture that the average man, after he had done his 
best to follow requirements, could see no value in, 
and naturally lost interest. 

Illustrate Plainly the Real Value and 
Purpose of Cost Records 

It is extremely important that those in charge 
of costkeeping and road work, who are interested 
in securing costkeeping data and better business 
methods by state and county officials, put the 
matter up to the employe in such manner that he 
may readily understand the value of accurate rec- 
ords. Show him where his own position is to be 
bettered if he is capable (and most men believe 
themselves that) by having carefully kept costs. 
He should have some inducement to act as an 
incentive to carry out instructions and these in- 
structions should be sufficiently reasonable that 
he himself may see the value tc himself and the 
county as well as to others in their enforce- 

161 



ment. When this has been done, it will be found 
that the man who does not become interested in 
these matters sufficiently to make an honest effort 
to improve, will be the exception and not the rule. 
The trouble has been largely that supervisors and 
others have simply been criticised for not doing 
this, or that or the other thing, but no one has 
come out and given them a definite system by 
which they could produce improved results which 
was sufficiently simple to be understood by the 
average person. 

Fields Accountants Usually Live Wires 

A costkeeping system for field accounting 
should not be made simply for the use of experi- 
enced accountants or office men. The man who 
is the most valuable on construction work and 
who must do the detail work in connection with 
the gathering of costs, is frequently a man who 
has had very little general office experience, and, 
as a matter of fact, it has been observed that as a 
rule the man with long years spent in an office 
does not make as good a field construction ac- 
countant as the man who has had just enough 
general office experience to be fairly familiar with 
the rudiments of office work. For the office man, 
with long training at a desk, where everything is 
brought to him, it is difficult to develop the "go- 
out-and-get-it" spirit which is absolutely necessary 
for the field accountant to have if he makes good. 
The man who makes good on construction account- 
ing must be alive and alert ; have plenty of initia- 
tive, fairly well balanced judgment, and to con- 
sider no job which is for the good of the project, 
as beneath him. 

162 



"Spilled Dignity" 

Construction work is a poor place to develope 
dignity and the man who goes into camp with a 
liberal supply, either loses a large portion of it 
early in the game, or eventually his position. By 
this is meant self importance, rather than real 
dignity. Dignity which comes from strength of 
character and knowledge is at home anywhere. 

Timekeeper on a Large Construction Job 

The work of costkeeping and that of timekeep- 
ing on the average construction job is so nearly 
related that a few remarks concerning the duties 
of timekeeping may not be out of place. In fact 
good costkeepers are developed from good time- 
keepers. Timekeeping is important and only 
good timekeepers are of any real value on a job. 
The other kind are worth less than nothing. 

Timekeeping a Matter of Clothes? 

The ideas of the inexperienced applicant in re- 
gard to the duties of timekeeper on construction 
work are frequently amusing and pathetic as well. 
His general impression seems to be that the 
timekeeper's duties consist largely in securing the 
proper kind of clothes and that his work is to 
saunter up and down the highway with his time- 
book under his arm once or twice a day, depending 
on the condition of the weather, and marking 
down an "X" whenever he finds a man employed. 

The timekeeper on construction work should be a 
man of sufficiently broad experience to be capable 
of handling a large amount of detail. He should 
take time in the field twice a day, or as many more 

163 



times as the nature of the work demands, and he 
should take it at different hours each day. The 
men should not know the exact minute he is due. 
He should be in close touch with the detailed plans 
of the engineer or superintendent. He should have 
a fair knowledge of grading work and contractor's 
equipment and he should know every day where 
every piece of equipment on the job is. He should 
be observing and gather in his mind a large 
amount of detail which perhaps there may be no 
immediate use for, but which will sooner or later 
be required. He should know what every man is 
doing every day, and he should not pester the 
superintendent with unnecessary questions, but 
get information first hand, from his own initi- 
ative. He should take care of all incoming and 
outgoing mail for the men, and its prompt distri- 
bution. 

Timekeeper Must Be An Allround Man 

The timekeeper should be sufficiently familiar 
with mess operation to see that it is handled prop- 
erly, and he should know enough about accounting 
to handle the details thoroughly. 

The timekeeper, if he is made of the proper 
material, should be the right hand man of the 
superintendent or engineer, and at the same time 
the errand boy. He should look after the camp 
carefully, take means to keep the sanitary condi- 
tions good. He should know when men are sick 
and see that they are properly provided for. In 
short the timekeeper is the handy man around the 
camp and if his work is efficiently handled, usually 
there will be found a pretty well satisfied crew, if 

164 



the superintendent is equally efficient. If the camp 
conditions are poor, and the mess unsatisfactory, 
the very best of superintendents will find it ex- 
tremely difficult, if not impossible, to get efficient 
results on that work. 

The Spirit Controls 

And after all has been said on organization, and 
all the cut and dried rules have had consideration, 
the final result is that the organization is a good 
working unit, only when the proper spirit is 
found throughout. The developing and nourishing 
of this spirit is the function of the long headed 
and experienced organizer. Encourage the men 
to speak well of each other of their own depart- 
ments, and of other departments of the business of 
which they are a part. If they speak well they 
are usually "thinking" well. The beneficial 
effect of this attitude is certain to be felt. Such a 
spirit as makes the best organizations is very well 
set out in the few verses following. We need more 
of the "Fisherman's Spirit" in our every day 
work. Let us live while we work and help the 
other fellow to enjoy his work and his life by do- 
ing the little things that make life for us all worth 
living. 

Most of Us Should Go "FishhV " More Often 

His thoughts are mostly good and clean, 

Out fishin'; 
A feller isn't thinkin' mean, 

Out fishin'; 
He doesn't knock his fellow-men 
Or harbor any grudges then; 
A feller's at his finest when 

Out fishin'; 



165 



The rich are comrades to the poor, 

Out fishin'; 
All brothers of a common lure, 

Out fishin'; 
The urchin with the pin and string 
Can chum with millionaire and king, 
Vain pride is a forgotten thing — 

Out fishin'; 

A feller gits a chance to dream, 

Out fishin' j 
He learns the beauties of a stream, 

Out fishin'; 
An' he can wash his soul in air 
That isn't foul with selfish care, 
An' relish plain and simple fare — 

Out fishin'; 

A feller has no time fer hate, 

Out fishin'; 
He isn't eager to be great, 

Out fishin'; 
He isn't thinkin' thoughts of pelf, 
Or goods stacked high upon the shelf— 
But he is always just himself, 

Out fishin'; 

A feller's glad to be a friend, 

Out fishin'; 
A helpin' hand he'll always lend, 

Out fishin'; 
The brotherhood of rod and line, 
An' sky an' stream, is always fine; 
Men come real close to God's design, 

Out fishin'; 

A feller isn't plottin' schemes, 

Out fishin'; 
He's only busy with his dreams, 

Out fishin'; 
His livery is a coat of tan, 
His creed: to do the best he can; 
A feller's always mostly man, 

Out fishin'. 



166 



THE VALUE OF GOOD COST 
RECORDS 



A Field for Competent Cost Accountants 

Not Competition But Co-operation Is the Life of Trade 

In an address before the Chicago Commercial 
Club Edward N. Hurley, Federal Trade Commis- 
sioner, January 13, 1917, is reported to have 
stated that less than 10 per cent of the corpora- 
tions of the United States have any accurate 
notion of production costs and that nearly half of 
them had no net income whatever during the year 
1914. Unintelligent price cutting to meet compe- 
tition was frowned on by the commissioner who 
said that lower costs of products must come only 
from increasing efficiency of manufacture. Cost- 
keeping systems should be installed, he said, in 
all manufacturing and retailing establishments. 
Mr. Hurley predicted that within five years hardly 
a bank in the country will loan money to a mer- 
chant or manufacturer who does not present in- 
formation not only regarding assets and liabilities 
but regarding the degree of efficiency with which 
he conducts his business. Wise co-operation be- 
tween competing business men must follow the 
establishment of cost systems, said Mr. Hurley. 
Legitimate co-operation applied to standardization 
of processes and products, cost accounting and 
other phases of business was urged upon business 
as a most desirable and profitable procedure. 

167 



Cost Accounting Vital to Lumber Business 

A clipping taken from the Oregon Journal, of 
Portland, Oregon, under the heading "Finance; 
Timber; Industry," reads as follows: Cost Ac- 
counting Vital. Among the necessary enlarge- 
ments of co-operative endeavor in the various 
branches of the lumber industry may be men- 
tioned cost accounting. The prime need is for a 
general knowledge among the lumber manufac- 
turers of the actual cost of production. Until the 
lumber manufacturers throughout the country 
know more clearly, more promptly and more con- 
stantly what it is costing them to produce every 
item they sell, they will not have the fundamental 
basis for the adoption of right merchandising 
principles. 

Accounting for Road Funds 

Taxpayers who realize what a large part of 
their taxes are spent on roads and how poor is the 
average system of accounting for road funds, will 
be interested in the following resolution recently 
passed by the County Engineers' Association of 
the State of Washington : "Some system of cost- 
keeping must be devised whereby all expenditures 
from road funds from all sources may be classi- 
fied and segregated, in order that taxpayers and 
road off icals may be informed of details of cost of 
construction and maintenance of the various types 
of road. To this end we recommend that all 
vouchers for road work, before being allowed by 
the county commissioners, shall show details of 
expenditures, as to place, extent, character and 
classification of work, and that the county engi- 
neer be required to collect and file all such data." 

168 



CRITICISM OF A FOREIGN 
SCIENTIST 



But little consolation is found in the fact that 
chaotic conditions in road construction are not 
confined to one state. The following clipping found 
its way to the writer's desk, and as it contains 
some pertinent statements on highway work and 
lack of accounting methods, is included herewith : 

The Big Subject "Road Construction" 

A group of road men were talking good roads 
the other day in a rather serious strain, and a 
foreign scientist, who has given quite a bit of time 
to the subject of highways, and particularly to 
America's modern attitude toward them, argued 
that our view point was wrong. We are not going 
at the good roads problem with any degree of 
earnest thought, and consequently we are not 
likely to solve our difficulties with any degree of 
permanency or with an intelligence that will be a 
thing of pride to hand down to the generations to 
come after us and use our pathways through the 
country. 

Haphazard Guesswork on Road Construction 

The haphazard guess work given our road con- 
struction work was driving the scientist to ex- 
pressions of a very definite nature. 

"You do not know how long your roads will 
last! You have no idea which is the best paving 
material for various kinds of traffic. You are led 
by advertisers who know how to present their 
wares and you have no scientific knowledge of 

169 



what you are doing and why you are doing it." 
That is what the foreign scientist thought and 
said. 

In our country we would know. We would pave 
one mile with asphalt, one with concrete, one with 
brick and another with wood blocks. We would 
spend years if necessary in sending traffic at a 
given rate of speed over the roadbed, knowing 
exactly the number of tons used. We would man- 
ufacture equipment for it, and when the experi- 
ments were concluded there would be data to defy 
the most punctilious. There would be exact formu- 
las for every sort of traffic, and by measuring the 
traffic on a road to be built, the proper kind of 
material could be chosen and there would be a 
certain knowledge of just how long it should 
last. 

Lack of Proper Accounting Methods) Very Apparent 

"If the actual materials to be used were the 
only point of indecision the road problem would 
not present such a grave surface as it does. As a 
matter of fact the finances of road work are so 
uncertainly handled, and the system of accounting 
as yet so badly managed that therein lies a serious 
tale. 

"For instance, a certain State Highway Com- 
mission has had trouble ascertaining what the 
counties in the state have been spending because 
there is no complete system of accounts. One 
county reported collecting $16,000.00 for road 
work, but after investigation the commission 
found that $32,500.00 had been collected. Another 
county reported the collection of $3200.00 and 

170 



investigation showed a total of $19,600.00. And 
the discrepancies were not due to a desire to hide 
the true state of affairs, but merely to bad ac- 
counting." 

Better Methods Certain to Develop 

The answer to the foreign scientists criticism 
is that the necessity for good roads due to general 
automobile travel, grew too fast. There was no 
intermediate period for thoughtful scientific con- 
sideration ; there was no period of adolescence. So 
America must do the best it can. We will never 
give it the Scientist's consideration, but we will 
better our grip on the problem a thousand fold 
after a time. 

America's 100 per cent Men 

There is every reason why we should. Some of 
the country's most able men are figuring the 
tangles out of the snarl, and behind it are THE 
BEST BOOSTERS IN THE WORLD— AMERI- 
CAN BUSINESS MEN. 



171 



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